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Veba adds gas stations
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December 6, 1999: 7:40 a.m. ET
German utility secures control of country’s leading chain; shares under pressure
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LONDON (CNNfn) - Veba, the diversified German utility, boosted its presence in the domestic gas station market Monday by paying a reported $2.05 billion to take control of market leader Aral from Mobil and Germany’s BASF.
Veba already owns 56 percent of the company, but Aral’s shareholder structure gave Veba’s partners a veto over strategic decisions.
Veba plans to acquire 28 percent from the U.S. oil producer and 15 percent from BASF’s Wintershall unit, boosting its share to 99 percent. It did not specify a price, but press reports valued the stakes at 4 billion marks.
The German firm, which plans to merge with fellow utility Viag, said the deal would form a platform for the expansion of its gas station operations in Europe. The purchase
is subject to regulatory approval.
Mobil agreed to sell its stake to secure European competition watchdogs’ clearance for its merger with Exxon.
Veba (FVEB) and Viag (FVIA) shares remained weak. Veba dropped 3 percent in Frankfurt while Viag fell 4 percent despite denials that the company was in talks with the German government to close down some of its nuclear power plants before the next general election.
— from staff and wire reports 
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Veba
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