US entrepreneur approved to buy UK refinery
10/13/2014 12:00:00 AM
The European Commission gave approval to the Klesch Group to continue with the acquisition of the Milford Haven refinery
In July, billionaire Gary Klesch offered to purchase the 135,000-bpd plant from Murphy Oil for an undisclosed sum. The Klesch Group is considering investments over the next two years in England, Germany, Italy, France and central Europe.
The Wales refinery is one of the smallest UK-based refineries, and it produces gasoline, diesel, fuel oil, jet fuel, LPG and propylene. The Milford refined products are similar to Klesch Group’s Heide refinery in Germany.
The European Commission found that there would be no antitrust issues in this sale. As any overlap would be limited.
The European refining industry continues to struggle with negative profit margins and increased competition from imports of US refined products. To remain competitive, Europe continues rationalize high-cost and less efficient refining assets.
Klesch Group was started in 1990 and has units producing and trading oils, metals and chemicals. The company employs more than 2,000 people in 17 countries.
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