EU gives the green light to sale of BP's refinery in Gelsenkirchen

(Alliance News) - The European Commission on Tuesday said it had given permission to the oil major BP PLC to sell its refinery in the German city of Gelsenkirchen to the refinery operator Klesch Group. 

The commission said there are no competition concerns regarding the merger as the companies have only a limited combined market position. 

In the case of major takeovers, the Brussels authorities examine whether this could result in disproportionately large restrictions on free competition.

The Gelsenkirchen refinery is one of the largest in Germany. The complex, comprising two sites, can process around 12 million tons of crude oil annually. It primarily produces fuels for road and air transport. It also produces raw materials for the petrochemical industry.

According to BP figures the integrated refinery complex employs around 1,800 people. The group announced in March that it would sell the refinery to the independent Klesch Group. It said at the time that the sale was expected to be completed in the second half of 2026, subject to regulatory approval.

The Malta-based Klesch Group, owned by the American A. Gary Klesch, already operates two oil refineries in Europe.

The German news magazine Der Spiegel reported in April that the German Economy Ministry is also examining the sale of the refinery and is conducting an investment review. 

Der Spiegel reported that behind the Malta-based Klesch Group lies an opaque corporate structure in the tax haven of Jersey. Under certain conditions, the state can prohibit the acquisition of companies by non-European investors.

BP shares fell 5.7% to 520.07 pence each on Tuesday afternoon in London. The company on Tuesday announced the immediate removal of Albert Manifold as chair and director, citing "serious concerns raised to the board related to important governance standards, oversight and conduct."

source: dpa

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