​Z Energy to buy Chevron New Zealand

Z Energy will acquire Chevron New Zealand for NZ$785 million.

It has today announced it has signed an agreement to acquire 100 per cent of the Chevron’s downstream and upstream operations in New Zealand, including service stations, and lubricant interests, as well as its transport fuel business.

This also includes the Caltex operations in the country.

Z Energy CEO Mike Bennetts said the acquisition was a major development for the company, and New Zealand.

“By investing in new offers there will be new jobs created as well bring back roles from offshore,” Bennetts said.

“This acquisition bucks the trend of Kiwi companies being sold offshore. Instead, this transaction represents another example of bringing New Zealand operations of a multinational company directly into the ownership and exclusive operation of a [New Zealand] company.”

The acquisition will be financed through a combination of existing funds, term debt, and standby facilities, as well as an underwritten pro rata equity raising, which will be carried out closer to settlement.

Goldman Sachs NZ, Minter Ellison Rudd Watts, Chapman Tripp, and PwC are acting as advisors to the process.

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