Chinese company acquires KMGI, plans to open 2,000 gas stations

China has taken a huge leap into the European fuel retailing market after CEFC China Energy Company Ltd has agreed to acquire 51% of KMG International (KMGI), which owns over 1,000 gas stations in the continent, reported Reuters.

The agreement was signed between CEFC and KazMunayGaz, Kazakhstan state oil and gas giant and parent company of KMGI, as part of an agreement package of deals worth around $4 billion, reported Reuters.

KMGI has around 1,000 gas stations across Europe, with most of them operating in the Eastern corner under the Rompetrol brand. They have also controlled the Dyneff brand since 2005, which operates in Spain and France and was sold to CEFC last October.

According to Reuters, the Chinese company plans to invest billions to expand the retail network to more than 3,000 gas stations.

The deal was part of a larger agreement to exchange and acquire assets in sectors including oil and gas, telecommunications and nuclear power, as China tries to invest in the development of the Silk Road and the European fuelling industry.

Other important KMGI assets include 100,000 barrels per day refinery and 400,000 tonnes per year fertilizer plant in Romania.

It is still unclear if CEFC will be more interested in the downstream or upstream segments of KMGI. However, their declared intentions of expanding the gas station network reveal a special interest in the fuel retailing sector.