Esso and Mobil petrol stations across Colombia may soon be branding the emblematic colors of Terpel after the oil and gas leader secured a COP1,73 billion (US$603 million) loan to acquire the assets of the North American energy company in Colombia.
ExxonMobil has had a business presence in Colombia for 95-years.
The move by Organización Terpel S.A. to expand an existing portfolio of 5,691 petrol stations as well as finalize the purchase of ExxonMobil’s lubricant business, comes after another important acquisition in Colombia’s financial sector – the announcement early February that Canada’s Bank of Nova Scotia will buy Citibank Colombia’s retail and small banking division.
With an AAA credit rating, Terpel was given an 18-month bridge loan to proceed with the purchase of ExxonMobil’s assets in Colombia, as well as consolidate the lubricants division. The total cost of the operation is expected to reach COP$2,09 billion pesos (US$740 million).
According to a resolution by the country’s Superintendent of Industry and Commerce (SIC), Terpel must sell 700 ExxonMobil fuel service stations to a third party in order to pay-back the loan, as well as sell a production plant near Bucaramanga. Terpel S.A also provides octane grade aviation gasoline for the aviation industry.
For a second consecutive year, Terpel has made the top 10 list of companies on the RobecoSAM “Sustainability YearBook” for their commitment to development goals and sustainable practices in the retail sector. RobecoSAM is a leading asset management company focused on sustainability investing and publisher of the annual index.