Australian petroleum giant Ampol (ASX:ALD)
has finally won over its deal to acquire New Zealand’s Z Energy (ASX:ZEL)
, after months of take-over talks.
Under the binding agreement, Ampol will acquire 100 per cent of Z Energy shares at NZ $3.78 per share. The offer includes an adjustment mechanism where Ampol will pay an additional NZ $0.055 cents per share, for each day that completion of the transaction extends beyond 31 March 2022, up to a limit of NZ $0.10 cents per share.
Ampol has also agreed to pay the NZ fuel distributor a dividend of NZ$0.05 per share for the half year ending 30 September 2021, on top of its offer price. The move was aimed to create a larger platform to support the development of 'lower emissions energy solutions', in Australia and New Zealand.
“The additional scale, when combined with our established trading and shipping capabilities, regional supply chain and broader fuels infrastructure will bolster New Zealand’s fuel security as the local market transitions to fuel imports,” said Ampol's CEO Matt Halliday.
The Z Energy board has unanimously approved the deal, and recommend that Z Energy’s shareholders vote in favour of the deal. The takeover is subject to certain conditions, including obtaining New Zealand Commerce Commission clearance and Overseas Investment Office approval.
Ampol has committed to divest its existing New Zealand business, Gull, in full to ensure any potential competition law issues are fully addressed as a result of the scheme.
"The combined entity will be a Trans-Tasman leader in transport fuels and convenience retail, with greater scale and synergies supporting strong returns and earnings growth for our shareholders, whilst maintaining our commitment to financial discipline," said Ampol’s Chairman Steven Gregg.
Shares in Ampol (ASX:ALD)
are trading 3.8 per cent higher at $30.28. Shares in Z Energy (ASX:ZEL)
are trading 6.1 per cent higher at $3.42.