DCC to buy Danish oil distribution assets

DCC has agreed to buy Danish oil distribution and retail assets from Alimentation Couche Tard Inc.

The FTSE 250 distribution company said the business comprises the remedy package resulting from Couche-Tard's purchase of Shell's downstream marketing operations in Denmark.

The deal, which is conditional on European Commission competition clearance and will require a total investment of DKK300m (£30m), is expected to complete in the second half of 2016.

The acquisition will comprise Shell's commercial and aviation distribution business in Denmark and a 139 site retail petrol station network as well as contracts to supply 66 dealers. DCC will also enter into a long-term brand partnership with Shell to operate the network under the Shell brand.

The business will be merged with DCC's existing oil distribution business in Denmark and will leverage the company's newly-developed retail operating platform.

Chief executive Tommy Breen said: “This acquisition will significantly strengthen our business in Denmark, as well as further develop our presence in the retail market for transport fuels, following our previous acquisitions in the European retail petrol station market in Sweden and France."

At 1225 GMT, DCC shares were up 1.3% to 6,065p.