Noble Grp is acquiring the refined oil product business of Northville Product Svcs, a unit of petroleum & renewable fuels trading company, NIC Holdings Corp for US$70m in cash plus US$10m in convertible promissory notes due 2011 upon completion of the deal, expected in early June.
With the acquisition of NPS assets, Noble will have a significant presence in the US MidCont/Gulf Coast oil & gas platform and boost its storage capacity by another 3.7m bbls to 6m bbls as well as gain access to supply contracts with key US Gulf Coast refiners and wholesale marketing in pipeline systems.
The deal is in line with the group’s asset-medium strategy and supports its US ethanol, gasoline and distillates business Noble has highlighted that its looking to add oil and gas distribution in the US, and sees opportunities to buy agriculture assets like ports, storage, processing units and palm oil plantations. Share price support is at $1.71.
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