Barbadian company Sol expands into Dominican Republic
Monday May 16 2011 | 06:13 AM

The Sol Group is expanding it's already large empire to the Dominican Republic, in a deal said to be worth at least $200 million.

About 137 petrol stations will be under the control of the Barbadian company headed by local business magnate Sir Kyffin Simpson.

It is being done in a partnership between Sol affiliate Sun Petroleum and a DR partner VICINI and is the continuation of a series of acquisitions by Sol, starting with the 2004 purchase of Shell's similar businesses, more than 100 gas stations in the Eastern Caribbean, Guyana, Suriname and Belize.

Industry analysts said today that while those involved had been working on finalising the purchase since late 2009, the conclusion of it at this stage would bolster Sol's competitiveness against the new entrant which has bought out Chevron's Texaco brand in this part of the world.

Sol had been one of several companies, which bid last year to purchase Chevron's fuels marketing and aviation businesses in nine Eastern Caribbean Countries, including Barbados. It lost out to Vitogaz, S.A. a subsidiary of French company RUBIS.

According to reports of the DR, the deal to conclude the purchase the Anglo-Dutch Shell Company's division, which is the country's top aviation fuel supplier, would be sealed today.

Officials said in a statement that the arrangement would let Sol Petroleum keep the Shell brand through the current network of gas stations and continue to market those lubricants.

Its partner Vicini is the DR's second biggest producer of sugar and cane products, with investments in food and beverages, energy, services industry, media, banks, tourism and real estate.

Sol Dominican Petroleum Limited, a company formed by Sol and VICINI said the process of acquiring the shares of Company Shell Stations Dominican Management Services and Industrial Properties, SA had been completed and that Sol Aviation Services Limited had also purchased the assets of the Shell Company (WI) Limited, the aviation arm, and would "continue operations at the airport of Las Americas and Puerto Plata".

Sir Kyffin said in a statement that the latest deal signed Sol's intention of continued expansion into other markets.

"We welcome the expansion of our business now in the Dominican Republic and the opportunity to extend our business relationship with Shell, together with our partner VICIN," he said.

"We intend to work closely with local authorities, our employees and partners in order to respond quickly to the needs of our customers."

Sol now operates in 17 countries across all business segments, including service stations, industrial, commercial, aviation, lubricants and LPG not only in the Eastern Caribbean but also in South and Central America.