Delta Gold Energy and BDY to Join Forces in the Downstream Sector in Turkey
2nd April 2024
Delta Gold Energy and BDY Group have signed a Memorandum of Understanding (MOU) to explore a strategic cooperation and potential equity transaction subject to closing conditions.
BDY, a leading Turkish LPG supplier and Delta Gold Energy, one of the world's leading independent energy trading companies, aim to enhance their collaboration in the energy sector. The proposed transaction involves BDY acquiring an equity interest in Hypco Petrolcülük, a joint stock company in Turkey, represented by Veysel Baday of BDY and Bashir Bassatne of Delta Gold Energy Downstream (DGED), the Downstream arm of Delta Gold Energy Group.
Both parties will conduct due diligence and negotiate transaction documents. The transaction is expected to see DGED sell 49 per cent of its shares in Hypco Petrolcülük to BDY.
The strategic cooperation aims to support the growth of the Hypco Petrolcülük’s and each party's business interests while also contributing to Turkey's energy sector and economic growth. The partnership will further strengthen the competitive environment in the sector by growing Hypco’s network of service stations and establishing "HYPCO GAS," a new entity for the importation and distribution of LPG into Turkey. The parties will collaborate closely on various aspects, including logistics, trade management, and international trade structuring.
Bashir Bassatne, representing DGE, added, "This exciting strategic partnership aligns with our vision for further expansion and innovation in the energy market in Turkey. Through this collaboration, we aim to expand our reach to the Turkish consumer, support the growth of Hypco and leverage each other's expertise to explore new opportunities in the energy market."
"This MOU represents a significant step towards strengthening our cooperation in the energy sector," said Veysel Baday, representing BDY. "We look forward to working closely with Delta Gold Energy to achieve our mutual goals."
Hypco Petrolcülük CEO, Hatice Tulum, emphasised that the Hypco brand will continue operate in Turkey saying: “Hypco’s main objective is to strengthen brand loyalty through a commitment to customer service excellence and satisfaction. Under this partnership, the Hypco brand will grow even stronger as a fuel and LPG distribution company by combining BDY’s LPG experience with Delta Gold Energy’s multi decade track record of successful retail experience, extensive international trading expertise and strong commitment to environmental responsibility and innovation.”
The MOU is subject to further closing conditions and agreements, including satisfactory due diligence.
For media inquiries, please contact:
corporatecommunications@deltagoldenergy.com
About Delta Gold Energy
Delta Gold Energy is one of the world's leading independent energy trading companies, with a fast-growing renewable energy and emission reduction division. The company carries out trades spanning five continents, with key hubs in London, Dubai, Singapore and Houston.
Delta Gold Energy Group is increasing its share in the retail market by making strong progress with its storage and distribution networks in Turkey, Rwanda, Morocco, Pakistan and Bangladesh after Lebanon.
Delta Gold Energy Group, which has been conducting its business activities in Turkey within the scope of international trade for more than 40 years, made its first investment in the country in 2011 by purchasing Maris Petrochemical bitumen storage facilities in Mersin and has been continuing its services and trade since then. In 2016, it took its place among the fuel distribution companies in Turkey under the Hypco brand in order to reach directly to local consumers and provide the end user with the product and service quality they deserve.
About BDY
In 1970, BDY Group entered the commercial life with station management and logistics activities. In 2020, it acquired Russian Petgaz AŞ, which has the largest storage capacity LPG terminal in Turkey and the Eastern Mediterranean with a capacity of 64 thousand 150 cubic metres, and in 2021, it acquired Swiss Glencore's Black Sea LPG terminal in Giresun and continues to strengthen its activities in LPG wholesale trade, which is its locomotive business area. It shows its trust in our country with these acquisitions and foreign collaborations.
BDY Group, which sees the development of the distribution sector in our country as a natural progress, aims to grow in the retail sector in both fuel and LPG by taking a partnership step with HYPCO, an important player in the Turkish fuel sector, by uniting with Delta Gold Energy Group at the same point with the commitment to reach consumers directly and to provide customers with the service quality they deserve.
Media Contacts
Karim Bassatne
Head of Corporate Communications
E: corporatecommunications@deltagoldenergy.com