Rubis: rubis consolidates its presence in africa: acquisition of shell's lpg distribution affiliates in southern africa

10|18|2010

Rubis today announced it has signed binding agreements, on October 15th 2010, to acquire Shell's liquefied petroleum gas (LPG) distribution businesses in Southern Africa, mainly in South Africa and including Botswana, Lesotho and Swaziland. The deal doubles Rubis's presence in the LPG distribution business in Africa.

This acquisition squarely fits within the framework of Rubis' development strategy:

- With more than 100 000 tons annual sales of LPG under the Easigas brand in these four countries, Rubis positions itself as number two in the sector with a 30% market share, active in all channels of the LPG business: cylinders and bulk, residential, agricultural and industrial segments;
- The business which trade under Easigas brand name has a long historical presence in these countries and is a well-known strong and reliable brand;
- Demand for energy in general and in the LPG sector in particular in this region has excellent growth prospects;
- The logistic infrastructure in place (import terminals, cylinder filling plants, supply contracts) ensure sustainable access to the product, and new investments opportunities have already been identified in order to face the increasing demand.

The transaction which amounts to € 50 million will be financed from the Group's own resources and will have an immediate positive effect on Rubis' earning per share.

Final completion is subject to the prior approval from Governmental Authorities of South Africa.

For Rubis, this acquisition does represent a strong strategic move in this most dynamic region of the continent.
Beyond this transaction, Rubis still has the financial power to contemplate other core business acquisition projects.

Next update:
Q3 2010 sales figures and financial information: 10 November 2010

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