Bangchak fuels North Asia push with B9bn Caltex petrol stations deal

One of Thailand’s largest energy conglomerates has bought Caltex petrol stations in Hong Kong in a HK$2.1 billion (9 billion baht) deal, which the firm will use as a springboard into North Asia.

Bangchak Corporation Plc on Tuesday completed the acquisition of 100% of the shares of Chevron Hong Kong from Chevron Companies (China), according to a Bangchak statement.

A source told the South China Morning Post that the sale was driven by a combination of factors, including declining fuel demand, the growing popularity of electric vehicles, a rising trend of Hong Kong motorists refuelling across the border and strong competition from mainland Chinese rivals in the city.

Upon completion of the deal, Bangchak will continue to operate the service stations under the Caltex brand through a licensing agreement between the Thai firm and Chevron, according to an earlier statement.

Chevron Hong Kong operates a diversified energy portfolio, including industrial fuels, marine fuels and 31 service stations across the city, it said.

It generated revenue of HK$10.5 billion, while profit after tax reached HK$263.3 million by the end of 2024, according to Bangchak.

The Thai conglomerate said the deal was part of its regional expansion strategy and would strengthen its trading and commercial presence in North Asia, adding that the acquired company had been renamed Bangchak Hong Kong.

It is one of the largest deals by a company from the 11-member Asean economic bloc at a time when both the Greater Bay Area and the group are seeking to foster closer trade ties.

Chaiwat Kovavisarach, group CEO and president of Bangchak, said the acquisition aligned with the group’s long-term growth strategy.

“This acquisition marks another important milestone in Bangchak Group’s regional growth,” he said. “Bangchak Hong Kong will serve as our trading and commercial hub in North Asia, connecting its retail, trading, and marine fuels businesses with Bangchak Group’s broader network.”

As one of Asia’s leading financial, trading, maritime and aviation hubs, Hong Kong offers a strategic platform for regional expansion, according to Bangchak.

“[Bangchak Hong Kong] will further strengthen our position as an energy trader with an expanding international footprint while supporting the continued growth of our businesses in global markets,” Mr Chaiwat said.

With its well-established retail, trading and marine fuels businesses, Bangchak Hong Kong will strengthen the group’s international presence while creating opportunities to develop bio-based products and lower-carbon energy solutions in response to evolving market demand and commercial opportunities.

Since Jan 1, Bangchak has reorganised its business into five core groups: refining, marketing and biofuels; natural resources; power and infrastructure; oil trading; and new businesses and holdings.

The firm is entering a fiercely competitive Hong Kong petrol market dominated by five brands and challenged by the rapid rise of electric vehicles.

Motorists seeking cheaper fuel alternatives have also increasingly driven across the border to mainland cities such as Shenzhen and Zhuhai to cut costs.

According to a global petrol price website, fuel in China cost the equivalent of HK$9.80 per litre on Monday – about 31% of Hong Kong’s HK$31.80, the highest in the world. The global average was HK$11.50.

Source – Bangkok News