MOL increases its presence in the Czech Republic

MOL Group today signed a set of agreements with the owners of Bohemia Realty and Pap Oil ¬– which companies own and operate a country-wide filling station network under Pap Oil brand in the Czech Republic – about the acquisition of the two companies. The acquisition will include 124 fuel stations.

The investment is in line with MOL Group’s strategy to improve our presence and increase the retail market share in the supply radius of our refineries and increases further the synergies within the Downstream segment. The new filling stations will extend our captive market as well as improve the direct reach of the end users.

MOL Group has been present on the Czech fuel market via Slovnaft Ceska and it is active in the retail and wholesale trade of petroleum products. Slovnaft Ceska owns 25 service stations under Slovnaft brand, representing a 0.7% retail market share while its estimated wholesale market share accounts for 18% in the Czech Republic.

Following the successful closing of the transaction MOL Group will operate 149 retail stations throughout the country with an approximate combined retail fuel market share of close to 5% and will become the fifth largest company by the number of filling stations. MOL Group’s intention is to further pursue organic and inorganic opportunities in order to achieve at least a 10% fuel retail market share in the medium term.

Closing of the transaction is subject to the fulfilment of certain condition precedents, among others obtaining an anti-monopoly clearance.