Source: Radio New Zealand
Channel Infrastructure currently operates New Zealand’s biggest fuel import terminal at Marsden Point. Alan Squires Photography
Channel Infrastructure is refusing to be drawn into speculation on the company buying ExxonMobil’s New Zealand bulk fuel terminals.
The Australian newspaper reports Channel is emerging as a potential buyer for ExxonMobil’s terminals across the North and South Islands in a deal potentially worth up to $500m.
Channel declined to comment on the report, which it referred to as “market speculation”.
On Friday morning, the company – which on Friday morning had a market value of about $1.2 billion – operating the country’s biggest fuel import terminal at Marsden Point, after running the former refinery there, when the company was known as Refining NZ.
Greg Smith, investment specialist at KiwiSaver provider Generate, said buying ExxonMobil’s terminals would make sense for Channel.
“Channel has regularly sighted the intention or the aim to expand beyond Marsden Point, and this would certainly do that,” he said. “I think the other point is that it would be a good fit and it’s already integrated with some of Exxon’s assets, when you look at those in South Auckland.”
Smith said, if Channel were to make a move, the company would likely have to raise capital to fund the purchase, which he believed would be well received by the market.
“You’ve seen pretty good appetite for defensive infrastructure assets in the current environment.”
While the Commerce Commission would likely have a look if any deal eventuated, Smith said it would probably not stand in the way, if it was just for the bulk terminals.
“I think it would be a different situation, if they were buying the petrol stations as well.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand