The acquisition of Esso (Thailand) Public Company will make Bangchak Corporation Public Company (BCP) the oil company with the second largest market share in Thailand, 29.1%, behind PTT Public Company’s 39%.
According to BCP, the takeover deal, which was concluded on Wednesday between BCP and ExxonMobil, the parent company of Esso (Thailand) Pcl, will increase the oil refining capacity of BCP to 290,000 barrels per day and increase the number of service stations across the country to 2,100, from about 700.
BCP has assured that the 2,000 staff of Esso Thailand will not be laid off and will be employed under BCP’s management.
An executive of PTG Energy Public Company, currently the company with the second largest market share, said that foreign-owned oil companies have higher operational costs and lower profits than domestic oil companies. When confronted with fierce competition, their parent companies tend to sell off their business and move their investments elsewhere.
He also said that local oil companies do not source their income from selling oil products alone, but from side businesses, such as convenience stores and coffee shops in the compounds of their gas stations.
BCP’s 55.5 billion baht acquisition deal is still subject to approval from the Thai Ministry of Energy and the Securities and Exchange Commission.