DCC Takes Statoil LPG Arm

Irish company DCC has made its second massive liquefied gas acquisition in a month with the purchase of Statoil's liquefied petroleum gas (LPG) business in Sweden and Norway.

The acquisition, which was announced yesterday, will see DCC take control of Statoil's LPG arm in the two countries for an undisclosed purchase amount. It follows the acquisition of BP's LPG arm in the UK last month for €51.3 million.

Through yesterday's deal, DCC will gain access to the company's 20 staff as well as sales of approximately 260,000 tonnes of LPG per year. The company intends to rebrand the business as Flogas, another company DCC currently holds, which supplies LPG to the Irish and UK markets.

DCC will also enter into long-term LPG supply contracts with Statoil following the completion of the acquisition.

In a statement released yesterday, DCC said that the acquisition fit in with DCC's current plans to expand into other markets.

"The acquisition of Statoil Fuel and Retail's LPG business in Sweden and Norway is an important step in DCC Energy's planned expansion of its LPG business beyond Britain and Ireland," CEO of DCC, Tommy Breen, said.

"The business holds leading market positions in Sweden and Norway, selling to a broad range of industrial and commercial customers. Together with our existing oil distribution businesses in Denmark and Sweden, this acquisition significantly increases the scale of DCC Energy's activities in Scandinavia."