Several months after an announcement by owners of Chevron/Texaco that the company’s interests in the Cayman Islands, the Bahamas and Turks and Caicos were for sale, Rubis has announced the acquisition of those entities.
David Sterling, district manager at Chevron Caribbean, which operates out of Jamaica, has said the oil company wants a less complex structure for its global operations. He said Chevron was reducing its footprint in the region to invest its capital elsewhere in its global operation for better returns on investment and to strengthen its competitive position in a tough global industry.
Earlier this year, Rubis also bought 174 stations across the Eastern Caribbean. Other islands included in the first round of purchases by Rubis include Antigua, Barbados, Grenada Dominica, St. Lucia, St. Vincent, Guyana, St. Kitts, French Guyana, Martinique, Guadelope and Trinidad.
The deal which involves the Cayman Islands, the Bahamas and Turks and Caicos, Rubis will gain ownership of 39 retail stations, eight aviation facilities, six fuel terminals, an operation at the Nassau airport to be run jointly, as well as a commercial and industrial fuels business.
According to a news release issued by Rubis, the “transaction, which will be fully financed by existing bank credit facilities, is expected to boost the group’s existing operations in the West Indies by almost 75 per cent, with a positive affect on the group’s profitability from the year 2012.
“Completion of the acquisition is subject to prior approval from the local competition authorities,” the firm stated.
Craig Ebanks, owner of a Texaco station in the Cayman Islands, commented on what the deal might mean.
“When Chevron bought Texaco there were no changes in terms of branding and I don’t expect that Rubis has any plans for re-branding. I think they will just assume ownership and collect the money. They did not buy it because it’s losing cash. It’s a cash on delivery kind of business.”
Mr. Ebanks said he hasn’t spoken with new ownership.
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