Mon 1 Jun 2009, 11:26 GMT

OW Bunker eyes investment opportunities - source


Danish firm is reportedly looking at two acquisitions as part of its expansion strategy.



OW Bunker, one of the world’s largest suppliers and traders of marine fuel oil, is reportedly looking at buying up rival companies as the current economic downturn provides opportunities for expansion.

Speaking to Reuters, OW Bunker Chief Executive Jim Pedersen said that the company was currently looking at two acquisitions, but did not provide details regarding the amount the Wrist Group - owner of OW Bunker - was planning to spend this year.

"We are in that lucky position that we are owned by a capital fund," Pedersen said. "If we have the right projects, then we can find the necessary means in terms of investment capital."

Wrist Group is involved in a number of activities as well as bunkering including general ship supply, bulk trading, catering, chartering and ship management. Pedersen said the group was looking at expanding into North and South America via acquisitions.

Over the past year Wrist Ship Supply has already been active in the acquisitions arena with the takeover of Kooyman Dordrecht towards in December 2008.

In the marine fuels market, Paul Stebbins, CEO of World Fuel Services (WFS), one of OW Bunker's main competitors, revealed last week that the company is also currently looking at new investment opportunities in bunkering.

"We certainly believe that in today's market, there are opportunities to buy," said Stebbins in an interview with Dow Jones.

The news follows the company's recent acquisition of UK-based marine and land based fuels provider Henty Oil last month.

Meanwhile in February, Chemoil Chief Executive Clyde Michael Bandy also revealed that the company as a few potential acquisition targets on its radar and is 'favourably positioned' to take advantage of any business opportunities that may arise during the current economic downturn.

"As part of our business growth strategy, there's always three or four or five targets on our radar screen, and this year is no different," said Bandy during a news conference call.

Bandy refused to name the companies Chemoil was monitoring, but said it would explore a number of opportunities in Europe and the Americas and would continue to expand in Asia.


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