Russia's largest independent oil producer OAO Lukoil (LKOH.RS) said Monday it paid $500 million for a 100% stake in Turkey's sixth-largest retail operator Akpet as the company continues its expansion into European downstream assets.
Akpet, a subsidiary of the Aytemiz Group, operates 693 gas filling stations and has a 5% market share in Turkey, Lukoil said.
Last year, Lukoil's initial attempt to buy Akpet failed, but in April Turkish media reported that talks had resumed.
Lukoil, the Russian oil producer with the most assets abroad, has long shown an interest in growing its presence in Turkey due to its geopolitical importance and the country's large domestic market.
"This is a pretty big deal for Lukoil," said Artyom Konchin, an analyst at UniCredit investment bank in Moscow, noting that geographically Turkey is close to refiner ERG SpA's (ERG.MI) Isab refinery in Priolo, Sicily, in which Lukoil bought a 49% stake last month.
"It looks like Lukoil is trying to fill the value chain," said Konchin.
The deal also includes eight oil product terminals, five storage tanks for liquified natural gas, three jet fuel terminals as well as a motor oil production and packaging plant.