Petrolimex merges transport arm to streamline fuel operations

Petrolimex merges transport arm to streamline fuel operations

The restructuring is part of Petrolimex's comprehensive plan to reorganise the company from 2021 to 2025, with a vision extending to 2035.

A customer buying gas at a Petrolimex's station in Hà Nội. — VNA/VNS Photo

Petrolimex has announced the merger of its subsidiary, the Petrolimex Transportation Services Corporation (PTC), into its parent organisation in a strategic move designed to strengthen fuel transportation efficiency across the group.

According to a document submitted by Petrolimex General Director, Lưu Văn Tuyển, to the State Securities Commission (SSC) and the Ho Chi Minh City Stock Exchange (HoSE), PTC will become a wholly-owned subsidiary of Petrolimex following the merger.

The restructuring forms part of Petrolimex's comprehensive plan to reorganise the company from 2021 to 2025, with a long-term vision to 2035. This roadmap was approved by the State Capital Management Committee in a decision issued on December 5, 2022.

The Petrolimex Board of Directors approved the merger proposal on February 6. As a result, all of PTC's assets, debts, rights, obligations and legal interests will be transferred to Petrolimex, and PTC will cease to exist as a separate entity once the merger is complete.

Petrolimex will inherit all of PTC's assets and liabilities.

Post-merger, Petrolimex's charter capital will remain unchanged at approximately VNĐ12.94 trillion (US$490.4 million).

The merger will not affect the composition of the Board of Directors, the Supervisory Board, the General Director or the legal representatives of the group. If necessary, Petrolimex may register to add new business lines to cover operations previously conducted by PTC.

The move will also enable Petrolimex to reclaim resources for restructuring investments that have not delivered returns proportionate to their scale, thereby improving efficiency and supporting growth objectives in the next development phase.

The merger is expected to be completed within 30 days from October 1.

PTC, established in 2017, was created to optimise Petrolimex's fuel transportation activities, meeting future demand and aiming to position itself as a leading national fuel transportation company.

However, after nearly eight years of operations, PTC's organisational structure and business model showed limitations.

In particular, PTC struggled to establish a centralised transportation management model and was slow to adopt technology in operations, hampering its ability to optimise logistics for Petrolimex. 

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