Vitol sees acquisition opportunities in downstream, CEO says
Vitol Group sees an increased industrywide acquisition focus on upstream energy assets, which could present acquisition opportunities of downstream buys for the global trader, according to CEO Ian Taylor.
Elaborating on comments he made during a luncheon Q&A at the Platts Global Energy Outlook Forum in New York, Taylor said that the company feels most at home in the downstream sector, though acquisitions could also come in the midstream sector, in response to a question from Mergermarket. He referenced the company's recent acquisition of Total's wholesaling business and said that Vitol continues to look for opportunities.
Taylor also mentioned poorer performing downstream assets in the North Sea, without elaborating.
During his comments during the luncheon, Taylor said that potential targets would need to be "standalone," and would need to work by themselves.
Varo Energy, a Vitol subsidiary, and Carlyle Group acquired the Swiss storage and distribution assets of Total in July, without disclosing the terms of the deal. Varo also holds a 45% stake in Germany's Bayernoil refinery, Petrotank storage facilities in Germany as well as storage facilities in Switzerland, and other downstream assets in Germany.