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Two low-cost fuel providers have announced plans to merge their New Zealand networks into one, promising \u201cto drive lower pump prices\u201d for motorists nationwide.<\/p>\n
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NPD and Gull announced the proposed merger of the two entities last week, saying the combined business would create the country\u2019s \u201clargest independent, majority Kiwi-owned\u201d fuel provider.<\/p>\n
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The deal would see the companies fuse their sites, teams and supply chains together, while continuing to operate under their respective brands.<\/p>\n
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If approved, the merged entity would operate around 240 sites from Invercargill to Kaitaia, bringing together Gull\u2019s strong North Island presence with NPD\u2019s South Island footprint.<\/p>\n
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Together, the companies supply about one billion litres of fuel annually, a scale they say will increase their buying power and efficiencies to ultimately deliver lower prices at pump stations.<\/p>\n
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NPD owner and chief executive Barry Sheridan will become the group chief executive of the new company.<\/p>\n
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Ownership will be split evenly between the South Island-based Sheridan family and Allegro Funds, an Australasian private equity firm that owns Gull.<\/p>\n
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\u201cBoth companies are focused on making it easy for customers to pay less for fuel,\u201d Sheridan said.<\/p>\n
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\u201cNPD started doing so more than 55 years ago and Gull started shaking up the market 25 years ago.<\/p>\n
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\u201cTogether, we\u2019ll do even more so motorists pay less.\u201d<\/p>\n
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Gull chief executive Dan Gilbert said the merger will allow the two businesses to capitalise on their market share.<\/p>\n
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\u201cJoining forces means we\u2019ll be everywhere, accelerating what we can do for more customers in more places.\u201d<\/p>\n
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While customers likely won\u2019t notice any changes in their day-to-day operations, the companies said Kiwis will benefit from improved distribution, shared infrastructure and reduced duplication.<\/p>\n
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Gull\u2019s Mt Maunganui fuel terminal and NPD\u2019s fuel truck fleet will be combined to enable more directly sourced fuel to reach sites around New Zealand.<\/p>\n
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