Who delivers oil to the refineries

Oil: MOL buys refinery in Lombardy

With the IES takeover, Hungary's oil company is strengthening its growth path in the fight against the takeover by OMV.

BUDAPEST (red./ag.). The Hungarian oil company MOL continues to buy. While OMV is working on a takeover of MOL, the Hungarians have now in turn acquired the private Italian oil company IES (Italiana Energia e Servizi). As MOL confirmed on Tuesday, the takeover will cost around EUR 800 million, including EUR 300 million in debts of the Italians.

MOL boss Zsolt Hernádi described the move as “not a mere acquisition”, but as “organic growth” that will increase the value of the MOL shares. MOL is fighting against a takeover by the Austrian company OMV, which increased its stake in June from 10 to 18.6 percent and is thus the largest single shareholder. MOL itself buys its own shares and unofficially controls almost 40 percent of the shares, the majority of which is parked at friendly companies.

Refinery in Mantua

The main value of the acquisition is the IES refinery in Mantua, which is to be expanded by 130 million euros. According to MOL, the annual capacity will be increased from 2.6 to three million tons of crude oil. "The refinery production provides a good basis for further retail expansion in the region," it said. In addition, the Hungarians get 165 filling stations in Lombardy. In the fiscal year ended June 30, IES had sales of EUR 1.3 billion and an operating profit (Ebitda) of EUR 98 million.

("Die Presse", print edition, 08/01/2007)