BP Sells UK LPG Business

Ireland's DCC, a sales, marketing and distribution business, is set to acquire BP's liquefied petroleum gas (LPG) business in the UK for a consideration of €51.3 million.

As part of the transaction, which was announced yesterday, DCC will take over the LPG business's 116 employees and 13 locations, which supply around 87,000 tonnes of bulk and cylinder LPG in Britain.

DCC said in a statement yesterday that the company was similar to and highly complementary of another it operates, Flogas, which has an existing LPG presence in Britain, with annual sales volumes of approximately 190,000 tonnes.

"DCC is pleased to have reached agreement with BP to acquire its LPG distribution business in Britain," Chief Executive of DCC, Tommy Breen, said. "We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities and this transaction will enhance DCC's position as the leading oil and LPG sales, marketing and distribution business in Britain."

The acquisition is expected to take place in September.