DCC in ‘strategically important’ €30m fuels buy

DCC shares rose over 1.3% in London as it said it had bought a fuels distribution and retail business in Denmark.

The shares rise add to a strong recovery for the group — with the stock having risen 7.25% since the start of the year.

It is buying for €30m the commercial and aviation fuels business from Alimentation Couche Tard — the Canadian company which acquired the Topaz filling stations here from Denis O’Brien.

DCC will run 139 Danish forecourts under the Shell brand following an agreement with the oil giant.

Davy Stockbrokers said that the purchase was “small but strategically important”.

“DCC has today announced an agreement to acquire a commercial, aviation and retail fuels business in Denmark from Alimentation Couche-Tard.

"The transaction is small but strategically important, in our view, deepening the relationship with Shell and adding competence in aviation fuels — a targeted growth area,” the broker said.

The purchase also includes supply contracts with 66 dealers and an airport contract.

DCC chief executive Tommy Breen said that the latest purchase expands its presence in fuels on the continent.

“This acquisition will significantly strengthen our business in Denmark, as well as further develop our presence in the retail market for transport fuels, following our previous acquisitions in the European retail petrol station market in Sweden and France,” he said.