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Chevron Corp’s Australian Subsidiary Comes Back to Domestic Commercial and Retail Market

Chevron Corp’s Australian unit stated it might buy the domestic industrial and retail fuels business of Puma Energy for A$425 million ($288 million), underscoring a return to the nation’s fuel distribution sector.

The sale by Singapore-based Puma Energy, 49%-owned by commodities trading giant Trafigura, comes as Puma pushes to rebalance its books after a decade-long spree snapping up oil assets.

It reported a net loss of $463 million in the first nine months of this year.

For Chevron, the agreement underscores a return to a market it left in March 2015 after selling its half-share in refiner Caltex Australia for $3.7 billion.

Puma has over 270 retail sites, 20 depots, and three bulk seaboard terminals throughout Australia and delivers over 1 billion liters of fuel a year.

In November, sources familiar with the sale told reporters that Trafigura would accept a hefty low cost to the price it paid and that the property would likely fetch no more than $500 million, which they stated would be a pointy drop in price.

Puma, which stated it was retaining its bitumen business in Australia, entered the nation in 2013 with the acquisition of Ausfuel, Neumann, and Central Mixed Group assets. Media experiences at the time stated it paid around $850 million for the Ausfuel and Neumann assets.

Regardless of the potential scale of the price tag difference, some traders said the sale could be welcomed by Trafigura, which last week reported its lowest annual net revenue in almost a decade after a series of losses in its physical asset portfolio.

Puma’s other shareholders include Angola’s state oil agency Sonangol with 28% and Cochran Holdings, which is run by a former Angolan general, with 15%.

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