Foreign giants eye petrol distribution market share

After Idemitsu Kosan opened its first filling station in Hanoi, the Japanese investor planned to set up another one in Hai Phong City.  Meanwhile, PV Oil and Binh Son Refinery (BSR) are preparing for their IPOs in early 2018.  All these factors show that changes in the petroleum distribution market will occur and the dominance by Vietnamese distributors is over. BSR plans to have an IPO on HOSE in mid-January. A 49% BSR stake will be sold to strategic shareholders, Vietnamese or foreign. According to Tran Ngoc Nguyen, CEO of BSR, many foreign names can be found on the list of investors showing interest in BSR shares.  These include World Petro (the US), Rosneft (Russia), SK Group (the Republic of Korea), PTT (Thailand), Kuwait national oil & gas group and MacronPetro (Africa). With the IPO date on January 25, PV Oil announced it will sell a 65% stake. This means that the state will hold a 35% stake of the big distributor. Under the Enterprise Law, if holding a 36% stake or more, the state, as founding shareholder, will have the right to veto decisions by the board of directors.  However, with the plan to retain a 35% stake, the state shows that it is willing to give the enterprise to strategic investors, including foreign ones. The events that occurred recently also show that foreign investors are step by step penetrating more deeply into the Vietnamese market.  Idemitsu Kosan’s office chief representative Nobuyuki Nakamura had a meeting with Hai Phong… [Read full story]


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