KazMunaiGaz buy of 75 pct stake in Rompetrol cleared by EU |
|
|
|
Published
:
Mon, 19 Nov 2007 16:11
|
BRUSSELS (Thomson Financial) - The European Commission said it has cleared Kazakh national oil company KazMunaiGaz (KMG)'s proposed acquisition of 75 pct of Rompetrol Group's share capital.The commission said the transaction would not be effective competition in the European Economic Area or any substantial part of it.The EU executive said the parties' activities in Europe are complementary. KMG sells no crude oil or refined petroleum products in the EU, while Rompetrol sells refined products but has no production of crude oil or natural gas.The commission said its investigation showed that the proposed operation would not give rise to vertical competition problems, as KMG's share of the upstream market for the production of crude oil is low.Added to that, on the downstream markets, Rompetrol has low market shares, except in the Romanian markets, for the non-retail sale of diesel and LPG. On these markets it faces competition from substantial alternative suppliers, including Petrom, Lukoil and Rafo.KMG produces crude oil and natural gas in Kazakhstan, Russia and Azerbaijan. It has a single refinery in Kazakhstan and sells refined petroleum products mainly in Kazakhstan, Russia and China.Rompetrol is active in refining and the sale of refined products at wholesale and retail levels in South Eastern Europe, France and Spain.nina.chestney@thomson.comnc/salCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
|
|
|
|
Print this Story
Kazmunaigaz plans to borrow 3 bln usd to finance Rompetrol acquisition 