Total has signed an agreement to purchase Brazilian company Grupo Zema’s fuel distribution company Zema Petróleo for an undisclosed sum to enter the country’s fuel retail sector.
The transaction also involves the acquisition of Grupo Zema’s reseller and retailer division Zema Diesel, as well as its importation company Zema Importacao.
Zema Petróleo operates 280 dealer-operated service stations and several oil products and ethanol storage facilities, which are predominantly located in the states of Minas Gerais, Goiás and Mato Grosso. The company also undertakes a supply activity to third-party retail stations in these regions. “We intend to bring our high-quality products, operational excellence and innovative offers and services to the Brazilian customers.”
The transaction marks the company’s entry into the largest South American fuel retail market and the world’s second-largest low-carbon biofuels market. Total has also unveiled plans to expand its activities in the industry in an effort to double the number of branded stations within five years.
Total marketing and services president Momar Nguer said: “This acquisition is in line with our strategy to expand in large growing markets and in biofuels markets under our Climate roadmap. “By entering the retail market today, Total is also confirming its long-term commitment to the Brazilian market.
Driven by our dedication to our customers, we intend to bring our high-quality products, operational excellence and innovative offers and services to the Brazilian customers.” The company will commence the rebranding of the 280 service stations being acquired from Grupo Zema next year.
New flagships stations are also expected to be opened in selected locations. Through the network, Total will offer its full portfolio of fuels, including its Total Excellium premium fuel, high-tech lubricants, and other products and services.
The completion of the acquisition is subject to receipt of approval of the Brazilian competition authority. In Brazil, Total also operates exploration and production assets in the Campos, Santos, Barreirinhas, Ceará, Espírito Santo, Foz do Amazonas and Pelotas basins.