SOCAR Energy Holdings JSC, subsidiary of the State Oil Company of Azerbaijan Republic (SOCAR) in Switzerland, has acquired filling stations owned by A1 company and Pronto Oil firm, operating in field of petroleum oils trading, by entering retail fuel sales market of Austria.
Report informs citing the SOCAR.
According to information, SOCAR Energy Holdings invest part of its revenues in Switzerland over the past five years in investment projects in order to increase and enlarge the investments in downstream, create synergy with investment in previous years and further expand them. The main goal here is to benefit from the potential of new markets and to generate more revenue for the Azerbaijani economy by diversifying sources of income in the future.
In recent years, SOCAR has been carrying out various partnership projects in Switzerland such as expanding dealer and supply relations with medium-sized companies, using a common card system and others. The acquisition of a well-known family business A1 network in the Austrian market near Switzerland was the logical continuation and next step of this expansion strategy. 82 filling stations of A1 company operate across the country, which has a leading role in the filling stations market in the Austrian state of Styria. The company has 150 employees. In addition to A1, SOCAR has also acquired Pronto Oil Mineralölhandels GmbH, which is located in Graz city and operates in the field of trade. SOCAR Energy Austria LLC has been established to manage A1 network and Pronto Oil Mineralölhandels GmbH. Employees of A1 network and Pronto Oil Mineralölhandels GmbH will be kept in their jobs and will continue their activities within SOCAR Energy Austria LLC. Taking into account that A1 brand is already well-known in the Austrian market, SOCAR plans to operate the acquired filling stations under the same brand.
Edgar Bachmann, Head of SOCAR Energy Holdings JSC, expressed his satisfaction with the new project: “Acquisition of A1 network opens up new horizons to SOCAR in Austria, creates new commercial opportunities and strengthens its stand in this country as a leading energy company”.
Gerhard Annawitt, a former owner of A1 filling stations network and Pronto Oil Mineralölhandels GmbH, said: “SOCAR is the most suitable candidate for both A1 and Pronto Oil companies to succeed. By selling my company, I present it to the advanced and innovative company offering high-quality services, and I think that SOCAR will manage these companies in effective continuous way I wish”.
Notably, SOCAR entered the Swiss oil market 5 years ago with a new approach method that reflects retail sale of high quality goods and individual services to meet needs of local customers. Today, more than 63% consumers in Switzerland recognizes and highly appreciates the brand of SOCAR. SOCAR has expanded its dealer base in Switzerland and established partnership relations with 15 dealers as well as it is expected that more 5-10 dealers will join the SOCAR brand next year. Austria, neighboring Switzerland and a carrier of the same culture, is a strategic market for SOCAR. The A1 network is known as a high-value filling station brand in many regions of Austria.