Fuel companies NPD and Gull have made an exciting announcement of their plans to merge their national operations, pending approval from the Commerce Commission. This strategic move would see the integration of NPD and Gull sites, teams, and supply chains, creating the largest independent, majority Kiwi-owned fuel company.
Despite the merger, each of the combined 240 sites will retain its unique brand identity. Gull sites are predominantly found in the North Island, while NPD sites are more prevalent in the South Island, as stated in a joint release by the companies on Christmas Day.
The ownership of the new entity will be split evenly, with the South Island-based Sheridan family holding a fifty percent stake. Barry Sheridan, the current NPD owner and CEO, is set to lead the new company. The remaining fifty percent will be owned by Australasian private equity firm Allegro Funds, the current owner of Gull.
Both companies are confident that this merger will result in lower pump prices for consumers. Sheridan emphasized their shared commitment to providing cost-effective solutions for customers, citing NPD’s 55-year history and Gull’s disruptive market presence over the past 25 years.
With a combined workforce of 130 employees and a collective purchasing power of one billion liters of fuel annually, the new company is poised to have a significant impact on the market. Gull’s CEO, Dan Gilbert, highlighted the expanded reach of the merged entity, enabling them to serve more customers in more locations.
The statement released by the companies outlined their plans to streamline operations by eliminating duplication and leveraging shared services. This efficiency-driven approach is expected to enable the new company to maintain its position as a leader in competitive pricing for motorists.
Having initiated discussions with the Commerce Commission, the parties intend to file an application for clearance in January to proceed with the merger.
