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BP, Core-Mark Sign Supply Agreement

LA PALMA, Calif. -- BP Products North America entered a five year contract with Core-Mark Intl., allowing the supplier to provide all of the ampm proprietary products to its 1,200 convenience stores nationwide.

In addition, Core-Mark is designated as the approved supplier for traditional non-proprietary products, in a move designed to further advance ampm's ongoing supply chain efficiency efforts, marketing program effectiveness and consistency of offerings, Core-Mark stated.

"For more than two decades, we have enjoyed serving ampm franchisees in the West. I believe we are in a unique position to leverage this experience nationwide and, at the same time, facilitate common goals of strengthening the industry leading ampm franchise offer to the consumer," Michael Walsh, chief executive officer of Core-Mark, said in a statement.
In other BP news, BP plc received an offer from Delek Europe B.V., one of the largest fuel retailers in Europe and a sister company to MAPCO Express parent Delek US Holdings Inc., to buy its French 416-unit retail fuels and convenience business including selected fuels terminals.

The proposed purchase price is 180 million Euros in cash (approximately US$251 million), and is subject to working capital adjustments, BP said in a statement.

The deal also includes an agreement for BP branding to remain on the forecourts for a number of years under a licensing agreement, while BP would continue to supply fuel to the sites under a supply agreement. In addition, the sale would include interests or ownership in three fuel distribution depots, along with a long-term agreement for acceptance of fuel cards. BP staff working for the retail business would transfer to the new owner.

Jean-Baptiste Renard, BP's head of region for Europe and South Africa, said: "We believe the decision to sell is right for the business as it means the BP brand will stay on the forecourts, it is right for staff as their jobs would be retained, and it would give the new owners an opportunity to keep investing in the business."

On receipt of the offer, BP entered into a period of exclusivity with Delek Europe and has started discussions with the relevant works councils. The proposed transaction is currently expected to be completed in the second half of this year, the company stated.

"Delek is excited to expand and develop its retail business in Europe through the proposed acquisition of BP's marketing business in France," Zion Ginat, CEO Delek Benelux, said in a statement. "Delek is committed to drive value and to continue to strengthen the BP brand name in France for its customers and employees."

Any final transaction will be subject to works councils and regulatory approvals, according to BP. If the offer is accepted and approved, BP would continue to retain a presence in France through its business-to-business fuels, bitumen, lubricants and aviation businesses, the company stated.

Related News:

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Core-Mark Refinances Debt

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