BY NIDAA BAKHSH
UGI Corp. agreed to buy Totals LPG distribution
business in France for as much as $615 million, adding to the
US companys operations in the Europe
The acquisition of the LPG unit from Europe
s second-largest oil
company is seen closing in the first half of 2015, subject to
regulatory approvals and consultation regulations,
Pennsylvania-based UGI said in a statement.
The cost will be about $546 million to $615 million, raised
using cash and debt, and the unit will contribute to earnings
in the first year, it said.
Totals CEO Christophe De Margerie has been selling
assets to help pay for development of so-called
mega-projects. The company targeted $15 billion to $20
billion of asset sales from 2012 to 2014 and de Margerie in
February said they could reach $25 billion, without giving a
Total sold its 10% stake in Azerbaijans Shah Deniz gas
to Turkeys state oil
company for $1.5 billion in May, bringing total disposals
since 2012 to $16 billion.
The companys LPG unit distributed 265 million gallons
of the fuel to residential, commercial and industrial
customers last year, according to the statement. That
compares with about 250 million gallons distributed by
UGIs Antargaz in France.
The acquisition of Totalgaz would extend the footprint
of Antargaz, UGIs French LPG distribution affiliate,
expanding its residential and commercial customer base across
all regions of the country and creating a national leader in
LPG marketing, it said in the statement. The new
organization would be better equipped to hold its own and
seize growth opportunities in todays aggressively
UGI is an LPG distributor with operations in the US and 16 Europe
an countries, including the
UK and Poland.