Greenergy, a supplier of fuel to UK supermarket petrol stations, has launched a £1 billion bid to buy the UK retail network of Total France.
The French oil major, which is the world's fourth largest energy group, is selling its 780 petrol station forecourts as part of a review of its UK downstream operations.
Greenergy's new chief executive Paul Lester said he had held preliminary talks with Total about the sale.
London-based Greenergy, in which supermarket giant Tesco owns a 35.6 per cent stake, is also interested in acquiring 460 forecourts from the US oil firm Murco, according to a report in the Mail on Sunday.
Greenergy already supplies petrol and diesel to roughly one-fifth of the UK’s service stations, including those of BP, Shell and Texaco. It also supplies to forecourts owned by supermarkets Morrisons and Asda.
With revenues of £2.8 billion and profits of about £21 million, it is estimated that the company could now be worth more than £300 million. Its five-year plan aims to double its market share to supply 3,600 of the UK’s 9,000 stations.
Greenergy sells more than 140 million litres of petrol, diesel and biofuel every week—enough to fill more than 500 trucks per day.
US private equity groups TPG, Bain Capital and Blackstone are also competing for the assets, as well as independent fuel distributor MRH.
All have reached the second round of bidding in the auction.
