OMV Ends Push For Full Control of Petrol Ofisi

OMV said in August it wanted to increase its 42 percent stake in the petrol retailer to help develop Turkey its third strategic centre, after Austria and Romania. But this week OMV said it had ended talks to buy Dogan Holding's  stake in Ofisi, worth around $1.5 billion. It did not give a reason.  "Both companies now agreed to continue their stable partnership in Petrol Ofisi," OMV said in a statement.

Dogan's media arm, Dogan Yayin, has been slapped with a record $3.3 billion tax fine by the Turkish government, threatening the group's survival in what Dogan says is a politically motivated move by Turkey. OMV's chief executive warned last month that the tax row, which does not affect Petrol Ofisi's business directly, was delaying his company's plans to increase the stake.

 OMV, which has around $5.5 billion in its coffers which could be used for acquisitions, had been hoping to develop Turkey as a bridge between Europe and oil and gas-producing countries. Some analysts questioned the logic behind OMV's goal to take over Petrol Ofisi, saying it made more sense for the Vienna-based group to chase upstream assets. They also questioned the speed with which OMV went after the deal after having its fingers burnt in two other takeover attempts.

PetrolWorld 191109