Essar's EET Retail To Acquire UK Forecourt Operator SGN For 400 Mn Pounds

Essar Energy Transition's retail arm has agreed to acquire independent UK forecourt operator SGN Retail in a deal estimated at about £400 million, adding 118 sites to its network and creating a 235-site estate as it seeks to build a vertically integrated fuel business in Britain.

EET Retail, the retail division of Essar Energy Transition Fuels, in a statement said it had agreed to acquire 100% of SGN Retail, which was founded by Graham Peacock and Susan Tobbell.

While the company did not disclose the financial details, sources said the deal is estimated to be about £400 million.

The deal will give EET Retail annual fuel throughput of more than 650 million litres, combining SGN Retail's 118 locations with the 117 sites already operated by EET Retail.

EET Retail said the enlarged network would make it the UK's second-largest forecourt operator with direct integration into fuel production. It plans to expand the network to about 800 sites by 2031, equivalent to roughly 9% of the UK market, with fuel supplied by Essar's Stanlow refinery in Cheshire.

"Building a scaled, vertically integrated retail forecourt platform is a critical pillar of our long-term UK strategy. SGN Retail is one of the highest-quality forecourt networks in the UK well ahead of the market. This acquisition accelerates our plan to build a nationwide, vertically integrated platform of 800 sites, backed by direct refinery supply and delivering competitive prices at the pump for UK motorists," said Arvan Ruia, CEO of EET Retail.

The acquisition comes as EET seeks to reconnect fuel production with retail distribution, arguing that the UK's fuel market has become increasingly fragmented over the past two decades as oil majors reduced investment in domestic refining.

EET said the model would allow fuel refined at Stanlow to be distributed more directly to its own forecourts, reducing reliance on imports and multiple layers in the domestic supply chain.

"This is a unique, best-in-class opportunity and advances a core part of our M&A strategy. The transaction is backed by a top-tier group of banks spanning four continents, several supporting the UK forecourt sector for the first time, underscoring confidence in our backward-integrated growth model and in the UK fuels and convenience markets," said Viral Gathani, Head of Strategic Transactions at Essar Energy Transition (EET).

The transaction is being financed through a combination of cash and a new £250 million senior debt facility arranged by First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Natixis, OakNorth Bank, Royal Bank of Canada, SMBC Bank International and Sound Point Capital Management.

RBC Capital Markets was the financial adviser, with Herbert Smith Freehills Kramer and Weightmans serving as legal advisers to EET Fuels and EET Retail.

The acquisition is part of Essar Energy Transition's broader plan to expand presence across the UK energy supply chain. Its Stanlow Manufacturing Complex in Cheshire produces about 18% of the UK's transport fuels, according to the company.

EET said its retail expansion will allow more Stanlow-refined fuel to reach UK motorists directly, which it argued can strengthen domestic supply resilience amid global supply disruptions and refinery closures.

The company also plans to expand services across its forecourt estate, including hot food, convenience retail, vehicle valeting and electric-vehicle charging.

EET has outlined an investment pipeline of £4.3 billion through 2035 for low-carbon energy transition projects in the UK, with Stanlow at the centre of its plans to develop an energy transition hub in northwest England.

SGN Retail was founded in 2016 and operates 118 roadside locations across the UK, alongside retail, convenience and food-to-go brands.