Application to acquire Mobil's General Aviation

Monday 23 June 2008

Attention Newsroom - Statement by Shell New Zealand

Shell New Zealand applies to acquire Mobil's General Aviation business

Shell New Zealand today applied to the Commerce Commission for clearance to acquire Mobil Oil New Zealand Limited’s General Aviation (GA) Aerostop business.

Shell and Mobil have agreed a conditional contract for the sale and purchase of Mobil’s GA network of unattended refuelling facilities at 34 local and regional locations throughout New Zealand. These refuelling facilities supply Aviation Jet Fuel (Jet A1) and Aviation Gasoline (Avgas), and consist of a fuel tank(s) and “swipe card bowers” (fuel pumps which are activated with customer swipe cards).

The acquisition is subject to receiving regulatory approval.

Shell regards the acquisition of Mobil’s GA network as a one-off opportunity to expand its existing network. The acquisition will enable Shell to offer product at more locations, significantly improving its customer offering and enabling it to operate more effectively in this market.

Note to editors: This is not the purchase of Mobil’s entire New Zealand aviation business. Avgas and (to a lesser extent) Jet A-1 are products that fall within the General Aviation segment of the broader Aviation Fuels market. The customers in this segment are users of light aircraft and helicopters engaged in a range of activities from recreational flying, tourism, agriculture, search and rescue, air charter and flying schools.

Other segments of the aviation fuels market not covered by this proposed acquisition are “Big Jet” (wide body domestic and international carriers), domestic/special carriers (operated by Air New Zealand Domestic, Link and low cost airlines) and the Military.

ENDS

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