Total SA (FP.FR) and ERG SpA (ERG.MI) said Friday that they have signed an agreement with Anonima Petroli Italiana SpA (API.YY) to sell the fuel marketing and refining assets in their TotalErg joint venture.
Total said this transaction, which follows the divestment of the commercial sales and liquefied petroleum gas businesses, completes the sale of all of TotalErg's assets for a final amount of 750 million euros ($874 million).
Total said that although TotalErg is the fourth-largest fuel marketer in Italy, the market is fragmented and the profitability outlook was "not in line" with the group's expectations.
The French oil-and-gas company added that it has retained 100% of the joint venture's lubricants activities after acquiring ERG's 51% stake in the division. The move comes as Total focuses on reinforcing its lubricants business in Italy.
The agreement is subject to the approval of the relevant authorities.
Write to Anthony Shevlin at email@example.com
(END) Dow Jones Newswires
November 03, 2017 14:07 ET (18:07 GMT)