S&P affirms E-Copec, Copec on acquisition news

S&P said it affirmed the BBB corporate credit ratings on Empresas Copec SA (E-Copec) and Compañía de Petroleos de Chile Copec SA (Copec).

The outlook remains stable.

E-Copec announced that its subsidiary Copec has reached an agreement to acquire Mapco, a fuel distribution chain in the United States, for $535 million.

The group will finance about 80% of the transaction with internal cash generation, and the debt, S&P said.

The agency said it believes that, if completed, the acquisition could strengthen Copec's business scale and geographic diversification.

The agency said it also expects Copec to improve Mapco's operating efficiency to levels on par with its own fuel stations.

However, Mapco's contribution to Copec's current business would be small considering that the transaction includes 348 gas stations and Copec currently has 2,736 stations, S&P said.

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