The Nigerian Independent Petroleum Company (NIPCO) on Wednesday announced the acquisition of 60 per cent stake in the Mobil Oil Nigeria Plc (MON), a leading downstream player of high repute.
The Managing Director, NIPCO Mr Venkataraman Venkatapathy disclosed this in a statement after the completion of the signing of the deal.
Venkatapathy said that the acquisition was agreed with the execution of a Sales and Purchase Agreement with ExxonMobil.
According to him, with the signing, we will start the transition period and initiate the process of obtaining regulatory approvals from the requisite federal agencies like Securities and Exchange Commission of Nigeria (SEC) and Nigerian Stock Exchange (NSE).
“The transition period will also enable NIPCO plc to effectively manage a smooth and successful completion of the transaction.
“NIPCO considers this acquisition an important synergy. It is part of our strategic move to support Nipco’s continuous growth and expansion of its Nigerian retail footprint.
“We are confident of adding tremendous value to MON and likewise MON will add a huge value to Nipco,’’ he said.
The managing director said that NIPCO will continue to maintain the Mobil brand on its retail outlets as well as continue to blend and sell the Mobil brand of lubricants under Branding Licence(s) from ExxonMobil.
He, however, expressed the company’s profound gratitude and appreciation to ExxonMobil for selecting us as the preferred bidder for the acquisition of MON.
“We wish to give every assurance to ExxonMobil that having entrusted us with this invaluable asset .
“We will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence, NAN quotes Venkatapathy saying.
He said that NIPCO’s expansion trend reinforces its implicit confidence in Nigeria’s future.
He said that the Nigerian economy still provides a robust and premium return on investment and Nipco plc is privileged to have been given this opportunity by ExxonMobil on its home ground.
Venkatapathy lauded the company’s shareholders support, adding that it’s a welcome development to a new dawn.
He said that NIPCO indigenous Nigerian downstream oil and gas company would ensure stability, prosperity, sustainability and growth of the company and the shareholders.