FE Report
Omera Petroleum Limited, one of the country's leading LPG distributors, is set to acquire nearly all the shares of another major player, Totalgaz Bangladesh, for Tk 2.27 billion.
Listed MJL Bangladesh, the parent company of Omera Petroleum, disclosed the news in a filing on the Dhaka Stock Exchange (DSE) website on Monday.
Omera Petroleum Limited is a subsidiary of MJL Bangladesh.
According to industry sources, the acquisition is expected to diversify Omera's revenue streams and boost profitability. Omera currently holds a 22 per cent market share, while Totalgaz accounts for about 5 per cent. With the consolidation, Omera's market share is expected to rise to nearly 27 per cent, strengthening its leadership in an industry facing rising costs and intense competition.
Following the disclosure, MJL Bangladesh's share price rose by 3.33 per cent to Tk 102.50 each on Monday on the Dhaka bourse. The company holds a 62.49 per cent stake in Omera Petroleum.
Omera Petroleum recently entered into an agreement to acquire 99.995 per cent shares of Premier LP Gas Limited (PLPG), which operates under the brand name "Totalgaz Bangladesh." The deal, valued at Tk 2.27 billion, is subject to regulatory approvals.
Omera Petroleum operates a nationwide LPG import, storage, bottling, and distribution network. Its main terminal is located in the Mongla industrial area of Bagerhat, supported by three satellite bottling plants in Bogra, Narsingdi, and Chattogram.
Totalgaz Bangladesh, owned by France-based Premier LP Gas, entered the Bangladeshi market in 2002 and quickly became one of the top three LPG importers and marketers. However, it struggled to keep pace with local competitors who invested aggressively in the import-dependent sector. Totalgaz incurred annual losses of Tk 150-200 million in recent years, prompting its exit.
MJL Bangladesh, meanwhile, began operations in 1998 as a joint venture between Mobil Corporation-later ExxonMobil-and the state-owned Jamuna Oil, forming Mobil Jamuna Lubricants. It now operates as MJL Bangladesh.
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