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Hungary's MOL signs agreement to buy Italian refining firm

Hungarian energy firm MOL on Tuesday said it had signed a deal to buy Italian refining and marketing company Italiana Energia e Servizi (IES).

MOL said the final purchase price would be disclosed after the closing of the transaction, which is expected to take place in the Q4 of this year following scrutiny by competition authorities. Dow Jones reported on Monday that the deal was worth €800 million ($1.09 billion), including €300 million in debt. The Hungarian firm said the acquisition was in line with its long- term downstream return target of 16%.

Italiana Energia e Servizi owns the 2.6 mtpa (million tons per annum) Mantova refinery in northern Italy and processes heavy crude brought in from Marghera Port via a 124-kilometer pipeline. The group has 165 retail stations within its supply radius. MOL said that by entering the northern Italian market in addition to its current focus areas of Croatia, Austria and Slovenia it would have a stable base to investigate further expansion towards the Mediterranean and southern Europe. (