India's Essar Group has completed the acquisition of UK petrol station operator SGN Retail, adding 118 sites to its fuel retail network. According to reports from The Times of India, the deal is valued at £400 million ($540 million or ₹5,166 crore), though an Essar spokesperson declined to comment on the exact deal value. The acquisition will increase the total number of petrol stations operated by Essar Energy Transition Retail (EET Retail) to 235 sites. Sector executives indicate recent transactions have valued forecourts at about £3.5 million per site, implying a figure around £400 million for SGN's estate. The group said the newly acquired sites would be supplied by its Stanlow refinery, the UK's second largest by output.
The acquisition aligns with Essar Group's ambitious expansion strategy to build a nationwide, vertically integrated platform of 800 sites by 2031. As reported by The Times of India, EET Retail is part of Essar Energy Transition Fuels, which operates the 200,000-barrel-per-day Stanlow refinery in the United Kingdom. According to Arvan Ruia, chief executive of EET Retail, the acquisition accelerates plans to deliver competitive prices at the pump for UK motorists through direct refinery supply. The expansion targets approximately 9% market share as major oil companies like BP and Shell exit the forecourt sector, with Essar aiming to reach 800 petrol stations by 2031 among the current 8,300 forecourts in the UK. The UK has about 8,300 forecourts, while Motor Fuel Group remains the largest independent operator with more than 1,200 sites.
The acquisition strengthens supply links with Essar's 270,000-barrel-per-day Stanlow refinery, which the company purchased from Shell in 2011. Essar has announced plans to invest $2.4 billion in Stanlow to develop a low-carbon energy hub covering carbon capture, hydrogen, and sustainable aviation fuel. The company believes owning its own forecourt network could support future sales of renewable fuels, positioning it well for the energy transition while maintaining strong demand for petrol stations despite the growth of electric vehicles. The group cited population growth, more multi-car households and the declining number of forecourts across the UK as key drivers for further expansion.
The acquisition will be funded through cash and a £250 million senior debt facility from major international banks including First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Natixis, OakNorth Bank, Royal Bank of Canada, SMBC Bank International and Sound Point Capital Management. According to Business Standard, this financing structure demonstrates the scale and international scope of the transaction, supporting the company's expansion into the UK fuel retail market. The integration is expected to help Essar offer more competitive fuel prices, while describing SGN Retail as one of the highest-quality forecourt networks in the UK. The company emphasizes that the transaction creates the second-largest UK forecourt network that is backwardly integrated with fuel production.
