Organización Terpel S.A. completed the acquisition of ExxonMobil Andean Holding LLC and ExxonMobil Ecuador Cía. Ltda. from Exxon Mobil Corporation for approximately $720 million.
March 14, 2018
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Organización Terpel S.A. (BVC:TERPEL) agreed to acquire ExxonMobil Andean Holding LLC and ExxonMobil Ecuador Cía. Ltda. from Exxon Mobil Corporation (NYSE:XOM) for approximately $750 million on November 16, 2016. The operations being acquired hold no debt and include cash and equivalents for $235 million. Empresas Copec S.A. (SNSE:COPEC), parent of Organización Terpel S.A. expects to finance this transaction with its own liquidity and with new debt. Empresas Copec intends to resell the acquired fuel business in Colombia in order to comply with free trade authorities.
At a meeting on December 15, 2016, shareholders in Compañía accepted the agreement reached with Exxon which in turns means that the firm will be responsible for both closing and funding the transaction. As of January 18, 2017, Compañía de Petróleos de Chile Copec S. A. expects to get regulatory approval in August 2017. As of July 31, 2017, SIC is evaluating the transaction. The purchase needs to be approved by Superintendence of Industry and Commerce (SIC) and could be completed in September 2017, if clearance is granted in August, 2017. On February 8, 2018, Terpel has secured $603 million in financing for the transaction and has signed a bridge loan agreement with a group of local banks. On February 19, 2018, Superintendence of Industry and Commerce (SIC) rejected the acquisition of the fuels business by Organización Terpel S.A. As of February 21, 2018, Terpel, has stated that it will comply with the terms dictated by the industry and business watchdog (SIC) in the acquisition and sell off its fuel distribution business and concentrate on the lubricants division after the acquisition. As of February 28, 2018, ExxonMobil has announced that it will stop operating its Colombian service stations on March 15, 2018 and the final approval from SIC is expected within two weeks whilst the actual deal should go through in six months at most. The deal is expected to complete in the second half of 2017.
Brigard & Urrutia Abogados acted as legal advisor to Copec and Gómez-Pinzón Abogados acted as legal advisor to Exxon Mobil Corporation. David Williams, Borja Marcos, Pablo Richards, Matthew Schwartz, Juan Carlos Balmaceda, Matías Anchordoqui Rob Holo, Jasmine Hay, George Davis, Marcela Robledo, Michael Isby, Timothy Mulvihill, David Rubinsky and Jennifer Pepin of Simpson Thacher acted as legal advisors for Organización Terpel S.A. and Empresas Copec, parent of Compañía de Petróleos de Chile Copec S. A. Waajid Siddiqui, Doreen Lilienfeld and Ethan Harris of Shearman & Sterling LLP acted as legal advisors for ExxonMobil Corporation.
Organización Terpel S.A. (BVC:TERPEL) completed the acquisition of ExxonMobil Andean Holding LLC and ExxonMobil Ecuador Cía. Ltda. from Exxon Mobil Corporation (NYSE:XOM) for approximately $720 million on March 15, 2018. Organización Terpel paid $715 million for the acquisition.
Organizacion Terpel SA is a Colombia-based company primarily engaged in the refining and marketing of oil and gas products. The Company specializes in buying, distributing and transporting fuel and natural gas, as well as in producing oils and lubricants for scooters, cars and trucks. It operates a network of gasoline stations with convenience stores and carwash, named Terpel. The Company also manages natural gas vehicle (NGV) stations, under the Gazel brand name. It provides a range of fuel types within maritime, aviation and industrial sectors. Furthermore, It is involved in the design and construction of NGV stations. The Company is present in Chile, Colombia, Ecuador, Mexico, Panama, and Peru, among others, through a number of subsidiaries, such as Petrolera Nacional SA, Lutexsa Industrial Comercila Cia Ltda, Combustibles Ecologicos Mexicanos SA de CV, Gazel Peru and PGN Gas Norte SAC.
Organización Terpel S.A. completed the acquisition of ExxonMobil Andean Holding LLC and ExxonMobil Ecuador Cía. Ltda. from Exxon Mobil Corporation for approximately $720 million.
ORGANIZACIÓN TERPEL S.A. 
