Acquisition of majority shares in Mobil Oil will grow economy – NIPCO

NIPCO Plc, an oil marketing company has said that its acquisition of majority shares in Mobil Oil would bring economy of scale to the fi rm, benefi t Nigerians and grow the economy.

Th e Group Managing Director of NIPCO Plc Mr. Venkataraman Venkatapathy made this statement in Lagos at the closing gong ceremony at Nigerian Stock Exchange (NSE). He said fi rst public appearance on the Nigerian Stock Exchange by NIPCO after the recent attainment of majority shareholding in Mobil Oil Nigeria Plc off ers veritable opportunity to share thoughts with the nation’s bourse on the milestone.

He statef that the acquisition which marks our avowed resilience of the Nigerian economy will no doubt enhance the continuous growth and expansion of our retail footprint in Nigeria as well as increase value and confi dence to investors.

He however said the group was confi dent that investors would benefi t greatly from the deal as improved performance of the company as an integrated oil fi rm remains our priority objective. Venkatapathy assured NSE and all other regulatory agencies that the expected due diligence will be implemented to the letter in all their transactions in the market and further spur investors’ confi dence in the new management of the company.

To all discerning investors, he said the deal is a big welcome to a new dawn and new era that would usher in stability, prosperity, sustainability and growth in the downstream sector in particular and the industry in general.

He said that the deal would defi nitely make the NIPCO Group bigger not only due to the acquisition but also the additional new business lines to be introduced to make the company one of the most profi cient and best run outfi t in the industry.

Th e overall goal of the group according to him is to increase Mobil presence and effi ciency across the nooks and crannies of the country and expand its retail footprint to a minimum of 300 at the earliest and make it a vibrant one.

He pointed out that in the landmark agreement signed with ExxonMobil, NIPCO will continue to use the Mobil brand and also continue to market Mobil lubricants He said NSE would be offi cially informed of the change of name of Mobil Oil Nigeria Plc to 11Plc in furtherance of our agreement with ExxonMobil in due course.

He commended NSE for the support and cooperation on the acquisition process and and the eventual approval to proceed with the exercise and the eventual approval of the deal.

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