LONDON, Aug 9 (Reuters) - European downstream firm VaroEnergy said on Friday it had agreed to increase its stake in amajor refining complex in Germany to up to 55% by buying sharesfrom oil major BP.
Swiss-based Varo currently holds 45 percent of the Bayernoilcomplex while BP holds 10%. Bayernoil consists of two plants -Vohburg and Neustadt - with a combined capacity of 220,000barrels per day. Italy's Eni and Russia's Rosnefthold the remaining interests.
As part the agreement with BP, Varo will also acquire themajor's polymer modified bitumen plant at Vohburg and a 9% stakein the major crude oil pipeline TAL that brings oil from theItalian port of Trieste to central Europe.
Varo partially restarted the Vohburg plant in June after adevastating fire at the gasoline-making unit last year.
"The Bayernoil refinery is a key strategic asset for VARO'soperations in Germany and beyond. Investing in additional shareswill offer greater flexibility and help us further optimize ourlogistics to continue to best serve our customers," Varo CEORoger Brown said in a company statement.
The transaction is expected to close in the coming months.
The company also operates Switzerland's only refinery atCressier and has storage and retail assets in Western Europe. Itis owned by oil trading giant Vitol, U.S. private equity firmCarlyle Group and Dutch firm Reggeborgh Invest.
Varo's shareholders cancelled a floatation on the Amsterdamstock exchange in 2018 and held talks earlier this year onselling part of the firm with an outside investor including HongKong tycoon Henry Cheng.(Reporting By Julia Payne; editing by David Evans)
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