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SSACelebrating75Yearsservicestationaustraliawinter2010ssa.org.au19Insteadtheyhaveputtheirmarketingenergiesintosponsorshipsspecialistproductslikelubricantsbecausealloilsainx19tthesameoilsandretailspinouts.ThereisanargumenttobemadethatBPeventriedtox18x19buryx19x19itsnameinitslastSpirograph-patternedlogomakeover.SoitisinterestingthatInfratilx19sarrangementtocontinueusingthex18x19Shellx19x19brandatretaillevelaccordingtochiefexecutiveMarkoBogoievskirunsforonlyfiveyearswithoptionstoextend.BogoievskiwhohashiredformerBPexecutiveMikeBennettstorunthebusinessclearlyhasawholenewindustrytolearnbeforeheworriesaboutbrandingbutwhenShellquititsservicestationsinIrelandafewyearsagotheprivateequitybuyoutgroupwhichalsoboughtanotherchainofoutletsrebrandedeverythingwithinashortspaceoftimeasTopazEnergy.NewZealandx19spopulationissimilarinnumbertoIrelandx19ssotheInfratilNZSuperdealhassomecomparability.ThebigdifferencethoughisthatinNZtheyareacquiringaverticallyintegratedbusinessx13allthewayfromrefiningthroughdistributionandstorageandonintoretail.NZhasonlyonedomesticrefineryNewZealandRefiningCompanywhichislistedontheNZstockexchangeandhasthefourmainparticipantsinpetrolretailinginthatcountryamongitslargestinvestorsx13Shell17percentBP24percentMobil19percentandChevronCaltex13percentCaltexNZisunrelatedtoCaltexAustralia.ThefoursomebuypetroleumproductsfromNZRCproportionatetotheirrelativemarketsharescreatingsomethingofax18x19levelplayingfieldx19x19forpricingcomparedwithAustraliawherethecompaniesownsevenrefineriesbetweenthemandthecostofproductispartlydependentontheirownmanufacturingefficiency.InNZShellandBPhaveabout30and28percentofthemarketrespectivelywithMobilandCaltexbringinguptherear.Infratilcomesintothemarketwithanassuredsupplysourceready-madedistributionnetworkandthebiggestmarketshare.ItalsohassomethingnoAustraliangroupcouldhopeforx13strongtieswithbothdominantsupermarketgroups.Woolworthsx19ProgressivehasfueldiscountsredeemableatShellwhilerivalFoodstuffsrunstheFlyBuysloyaltyprogramofwhichShellNZisa25percentowner.About70percentofNZhouseholdshaveaFlyBuyscard.Bogoievskihasalreadyindicatedthatthenon-fuelsalessideofthebusinessisonethatcoulddowithsomeworkx13pointedlysinglingoutBPx19sx18x19WildBeanx19x19outletsasabenchmark.TopazinIrelandputaheavyemphasisonitsstoresalesitnowsells4millioncupsofcoffeeayear.MobilinAustraliawillnotsaywhethertherivalbidderstoCaltexforits300servicestationsincludedinfrastructuregroupslikeInfratilalthoughitisbelievedthatwhilemostwereindustryplayersthereweresomenon-oiltyre-kickerswhodroppedoutearly.CaltexisstilltoformallyrespondtopricingpolicemanGraemeSamuelx19sDecemberdecisiontoknocktheacquisitiononthehead.Itinitiallysaiditwouldwaitonthefullreportwhichcameoutlastmonthbutisstillnotsayingwhichwayitwilljump.MobilconfirmsitstillhasalivecontractwithCaltexbutwillnotsaywhetherthereisatimelimitoncompletion.ThereareplusesandminusesforMobiltoendingtheCaltexarrangementbutgiventhedealwassignedlastMaythereisagoodchancethat12monthswouldbeatrigger.IfCaltexcannotfindawaytoappeasetheAustralianCompetitionandConsumerCommissionx19srejectionofitsbidtobuytheMobilstationsExxonMobilcouldbeexpectedtolookelsewhereforbuyers.Aninfrastructureinvestmentconsortiummightbejustthevehicle.ThepurchasewhichremainsconditionalonfundingandregulatoryapprovalwillbepaidforwithNZ420millionofequityandaNZ600millionbankingfacilityWellington-basedInfratilsaidinastatementtotheNewZealandstockexchange.ThepartieshavebeeninexclusivetalkssinceNovember.ShellEuropex19sbiggestoilcompanyissellingitsNewZealandfuelretailingandrefininginterestsaspartofaglobalstrategytofocusonproductioninexpandingmarkets.ExxonMobilCorp.isseekingbuyersforitsfillingstationsandotherdownstreamassetsinNewZealandandAustralia.x1cThesemajorsareprioritizingcapitaltoupstreaminexplorationactivitiesinfast-growingmarketsx1dInfratilManagingDirectorMarkoBogoievskisaidonaconferencecall.x1cWewouldexpectthatkindofpressuretocontinuenotjustinNewZealandbutinothermarkets.Infratildoeswellwhenmarketslikethisareundergoingsignificantchange.x1dInfratilsharesrose3centsor1.8percenttoNZ1.68at11.39a.m.inWellington.ThebenchmarkTop50Indexwas0.2percenthigher.ThepurchasewillbesettledonApril1withanadjustmentforactualvalueofworkingcapitalaboveorbelowNZ208millionBogoievskisaid.AnextraNZ13.5millionisalsobeingpaidtoShellfortheuseofTheHague-basedcompanyx19sbrandforthreeyearshesaid.InfratilandNewZealandSuperannuationaNZ15.2billiongovernmentagencyformedtohelpmeetthenationx19slong-termpensioncommitmentswilleachcontributeNZ420millionofequityTheShellassetswhichcomprise229fillingstationsportterminalsanda17percentstakeinNewZealandRefiningCo.willmakeup10percentofInfratilwhichalsoownsairportsabuscompanyandenergyassetsincludingastakeinelectricityretailerTrustPowerLtd.x1cTheassetswillformacorepartoftheportfolioforalongperiodoftimex1dsaidBogoievski.x1cTheywillthrowupadditionalcapitalopportunities.x1dShellwhichhasoperatedinNewZealandfor97yearsandbeganexplorationtherein1955isretainingitsoilandgasassetswhichincludestakesinthenationx19sMauiKapuniandPohokuragasfields.