China Aviation Oil buys UK-based jet fuel outfit for US$8m

China Aviation Oil (S) Corp (CAO) has acquired a private-owned jet fuel supply and trading outfit based out of the UK for about US$8 million.

CAO said on Friday that it has completed the acquisition of Navires Aviation for a consideration of about US$8 million from Castleton Commodities Merchant Trading LP.

Navires has an interest in Aviation Fuel Supply BV, a company incorporated in the Netherlands that holds a concession from the Schiphol Airport Authority to manage the distribution of jet fuel on behalf of its shareholders to the airlines at the airport.

Navires also has an established comprehensive jet fuel supply system, with critical supply chain contracts in Europe that enables it to facilitate the sale of jet fuel to local and international airports at Schiphol, Frankfurt, Brussels and Stuttgart airports.

CAO said the acquisition of Navires will allow it to strengthen its foothold in the European aviation market, leveraging on Navires' jet fuel supply network and operations backbone to drive the aviation marketing business in the Amsterdam-Rotterdam-Antwerp region and beyond.

The acquisition was funded through internal resources and is not expected to have any material impact on CAO's earnings per share or net tangible assets per share for the financial year ending Dec 31, 2018.