The Nigerian Independent Petroleum Company (NIPCO) has signed the acquisition of 60 per cent stake in leading downstream company, Mobil Oil Nigeria Plc (MON), following the execution of Sales and Purchase Agreement with ExxonMobil.
In a statement after the deal was signed, the NIPCO Managing Director, Mr. Venkataraman Venkatapathy, said that both firms would now start the transition period, which includes obtaining regulatory approvals from the requisite federal agencies such as the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE), he said.
“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,” the News Agency of Nigeria (NAN) quoted Venkatapathy as saying in a statement.
“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 assured that NIPCO would continue to maintain the Mobil brand on its retail outlets, as well as blend and sell the Mobil brand of lubricants under Branding Licence(s) from ExxonMobil.
Thanking ExxonMobil for choosing NIPCO as the preferred bidder, he said the company would “ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow its code of conduct/ethos and operational excellence.”
Venkatapathy explained that NIPCO’s expansion trend reinforces its implicit confidence in Nigeria’s future, insisting that the economy still provides robust and premium return on investment, while NIPCO is privileged to have this opportunity on its home ground.
More so, he assured that the indigenous downstream oil and gas company would ensure stability, prosperity, sustainability and growth of the company and its shareholders.