18 May Glencore in JV to service Mexican fuel stations
Glencore (LSE:GLEN) has taken advantage of the unshackling of Mexico’s oil sector by securing a joint venture transport fuels supply deal with national service station operator G500.
Mexico’s state-owned petroleum company Pemex previously held an 8-decades long monopoly on all oil production, refining and marketing, including retail markets.
However, Pemex’s domination of the sector was revoked by the government in 2014, allowing Glencore and other private companies to move into the Mexican oil industry.
“Our partnership with G500 expands our presence into downstream and retail businesses, a natural fit with our global supply capabilities,” said Alex Beard, head of Glencore Oil.
Alongside G500, the global commodities firm will provide fuel, branding and ancillary retail services to 1,400 fuel stations in Mexico under the JV tag ‘the G500 Network’.
G500 currently represents around 12% of Mexico’s total service stations, with a strong focus in central Mexico.
Antonio Caballero Fernandez, G500 president, said: “This partnership is creating an innovative franchise that will improve competition, product quality and services for the Mexican consumer.”