Frequently asked questions
Dealer queries on DCC acquisition answered
Dealers will be aware that DCC plc, the sales, marketing, distribution and business support services group, which owns Gulf Retail in the UK, has reached conditional agreement with Rontec Investments – Gerald Ronson’s Snax 24-led consortium – to acquire certain oil distribution assets currently owned by Total in Britain, the Isle of Man and the Channel Islands.
News of the acquisitions has generated a number of enquiries from operators. Here are answers to frequently asked questions;
Q1: Has GB Oils bought all the Total Dealer sites?
DCC plc, the sales, marketing, distribution and business support services group, has reached conditional agreement with Rontec Investments LLP ("Rontec") to acquire certain oil distribution assets currently owned by Total in Britain, the Isle of Man and the Channel Islands ("the Acquired Businesses"). Rontec reached conditional agreement in June 2011 to purchase the Acquired Businesses as part of a larger transaction with Total. DCC's acquisition is conditional on Rontec completing its transaction with Total, which is expected to take place in late 2011.
Q2: What does this mean for GB Oils?
This is a steep change for the GB Oils Retail business and demonstrates our commitment to accelerate and develop our presence in the Retail market.
We are 100% dealer focussed and committed to growing and developing Petrol Retailing with our current and future dealer partners. We look forward to welcoming all the Total and Power dealers to the GB Oils family.
Q3: Is Retail a core business within GB Oils?
Yes, we are very much interested in the Retail market. Whilst historically we have been primarily involved in fuel distribution, we have always supplied Retail sites and this represents a significant and very exciting opportunity for us. Unlike many suppliers at the moment, we are 100% dealer focussed and as such have built up a comprehensive supply and logistics capability across the UK.
With Gulf we have enjoyed rapid growth with over 300 branded sites, and we see very real scope for further growth in this market. We see ourselves as offering a new and dynamic option for all dealers.
Q4: I have a fuel contract with Total, what does this mean for me?
Subject to the completion of the deal, these contracts will pass to DCC and GB Oils. We will have comprehensive arrangements covering the delivery of fuel through to its invoicing. These arrangements will be confirmed closer to completion but we are working with the aim of making the transition as seamless as possible. To this end, for a short interim transitional period Rontec Watford Limited (a subsidiary of Rontec) will take over the management of TOTAL’s existing back office administrative services as the business is transitioned from TOTAL, which will ensure that there is no disruption in business operations as a result of the change of ownership. This may mean that for this short period some dealers will receive invoices in the name of Rontec Watford Limited (acting as agent for DCC).
Q5: What will happen with the Total brand?
Arrangements are in place to keep the Total brands in place for the lifetime of the current contracts. Therefore, no immediate branding change is planned or required. We can extend, or re-sign, existing dealers for up to three years from the date of completion of the acquisition.
GB Oils obviously has a suite of brands, for example Gulf, which we are very excited about and over time we will look to adapt our branding strategy accordingly.
Q6: Will I still have the same Account Manager?
Yes, you will. All existing Total field staff will continue to service their dealer partners / customers and will continue to remain the point of contact going forwards.
Q7: Will the price of my fuel go up?
Any changes in fuel price will not be as a result of this change. All pricing mechanisms within the contracts remain the same and letters will be sent to all dealers confirming assignments of the current contracts. This process has been agreed with Total.
Q8: What about my fuel cards?
There will be no change to fuel cards on completion of the deal. As part of this agreement, the Total fuel card packages will remain. The contracts, as agreed with Total, will remain in place for a period of time.
Going forward GB Oils will be looking to use its strength and leverage to create improved fuel card offers across the whole of its Retail network. This will encompass Total and our other brands as well.
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