BCCI satisfied with arrangements for BNTCL sale

The Barbados Chamber of Commerce and Industry (BCCI) today said it was satisfied that the bidding process for the sale of the Barbados National Terminal Company Limited (BNTCL) by the Barbados National Oil Company Limited (BNOCL) was properly managed, and that the sale will not adversely affect consumers.

The Sol Group, along with Rubis Caribbean, both members of the BCCI, were the only two companies to put forward proposals for the purchase of the entity.

A statement issued by BCCI Executive Director Lisa Gale said the subsequent selection of the Sir Kyffin Simpson-led Sol Group as the preferred bidder was based on the recommendation of KPMG, another BCCI member company, which acted as BNOCL’s advisors in the transaction.

The Chamber spokeswoman also said the sale of BNTCL did not appear to negatively impact the interest of the petroleum industry, the business community, or the local economy.

“The sale of this entity will attract much needed foreign currency to bolster the country’s foreign reserves.  A position we know is much needed in these current economic conditions,” she said.

Lisa Gale

Gale added that several factors influenced the BCCI’s position, including the fact that Government, through the Division of Energy, will retain regulatory oversight and control the final pump price to the consumer.  Sol’s ownership of BNTCL does not allow it to determine final pricing to the consumer.

“BNTCL will own the terminal and provide through putting services only. BCCI has been assured that it will not import, own or sell the product.  This will continue to be BNOCL’s responsibility while the pricing of such product will continue to be the Government of Barbados’ responsibility,” Gale said.

She added that BNOCL will continue to import, own and sell petroleum products in Barbados, which will result in Sol having no supply pricing advantage over its competitors, along with regulatory and legislative protection afforded under the Fair Competition Act.

Another influencing factor, Gale said, was that Government was expected to retain one Preference Share as per the sale agreement, which will allow it to have some measure of control over the acquired company in the public’s interest.

“There is sufficient regulatory supervision and legislative protection to ensure that the competitors of the Sol Group in the fuel marketing and distribution market are not disadvantaged subsequent to the acquisition.

“BNTCL will continue to be bound by the terms and conditions of the existing operating agreements with BNOCL, and the marketers (Sol and Rubis).  This serves to maintain the existing market structure with no adverse impact to competitors. It also . . . serves to protect consumers’ interest.”

The BCCI also said the acquisition does not change the market power or dominance of BNTCL, adding that Sol has proposed a post-completion regulatory structure that will serve to protect consumers from any price increases that may be deemed as excessive.

Thirty-five per cent of the BNTCL shares are to be made available for public purchase within three to five years of the acquisition.

8 Responses to BCCI satisfied with arrangements for BNTCL sale

  1. urbanpostman February 25, 2017 at 11:00 pm

    The last line is the most important and most under-reported. This will give Bajans a chance to invest in what they believe in. The other helpful piece of information (not here) is that the government intend (by regulation) to reduce fossil fuel imports by 75% over the next 15 years.

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  2. Peter February 26, 2017 at 8:09 am

    SOL is a fully owned Barbadian entity led by the upright and respectable Sir Kyffin Simpson. Sir Kyffin is a fine gentleman who has NEVER deceived nor cheated anyone anywhere especially in business related matters. On the other hand I am concerned and fearful that Rubis which is licensed to the MAassey Group headed by Trinidad based businessmen and which has a reputation of competitive business acquisitions only to incorporate them and shut them down replacing their staff with mainly Trinidadian connectivity. Case in point? BS&T was somewhat forcefully acquired as a Trinidadian offshore business enterprise company mainly for currency protection and market power. They have now established a Real Estate company mainly to control Trinidadian assets both in the bank and on their books. They control Barbados’ food imports mostly from Trinidad. They regulate supermarket pricing to suit their profit centers. Remember CLICO? That was a vibrant Trinidadian company with promising investment opportunities. What happened? They tried to control Barbadian politics through financial and real estate deals How much land and plantations did CLICO buy out and owned in Barbados? Sorry to stray a bit but the “Bottom Line” – pun intended – here is if we sell away our Asses (assets) we will have to sheet through our mouths. Sir Kyffin built his empire mainly in and on Barbados. Why would he destroy that? Think people, Think. Hal and Tony Web, I’d love to see your comments on this.

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  3. Judy February 26, 2017 at 10:47 am

    Peter you are a fool. RUBIS is a french company . Nothing to do with Massy . All of your comments regarding Rubis cites this company as a Massy company. You need to do your research. Are you in bed with Sir Kyffin? You are putting your neck on the block. I have always heard you can never vouch for a soul but yourself. Rubis is not a Trinidad company . The head office is in Barbados and there are over 100 Barbadian employees. Do your research….you sound silly each time.

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  4. jrsmith February 26, 2017 at 11:52 am

    I though barbados has grown up to the behaviour of the corporates over the last 5 years, but they are still way behind every body..All the tricks which is being played out in our barbados and on the government , is very insulting for bajans seeing how we are being used and the low level of our politicians not being able to understand ,how high level businesses control everything……
    As i always say barbados is there for the taking but not by bajans barbados , will always be the guinea pig,

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  5. Mikey February 26, 2017 at 1:49 pm

    @jrsmith,,,, what is all this nebulous round-about talk you are putting down ???
    If you do not understand what has happened with the sale just shut your mouth and stop showing how ignorant you are !!!
    SAY SOMETHING SENSIBLE AND POSITIVE EITHER FOR SOL OR FOR RUBIS, AND LEAVE OUT THIS MIDDLE-OF-THE-ROAD, STRADDLING-THE-FENCE FOOLISH COMMENT !!!
    WHO IS BEING USED IN THE SALE , IDIOT ???
    wHAT IS INSULTING FOR BAJANS < CLOWN ???

    THE GOVERNMENT WANTS FOREIGN EXCHANGE AND LUCKILY FOR SIMPSON, THIS TIME AROUND IT IS A BAJAN WHO HAS HIS HANDS ON THE OIL BARRELS .

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  6. Peter February 26, 2017 at 2:54 pm

    Thank you Mikey. jrsmith lived a few years overseas in England he says. Now he’s back dictating to Barbadians that they are the smartest people and systems in the world. I ask if things are so nice and rosey over there why did he/she return?

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  7. Greengiant February 26, 2017 at 4:40 pm

    Mike, jrsmith has nothing positive to say about decisions made by the government of the day. Apparently as Gabby once wrote, ” because he train in england Westminster choking he “.

    Fortunately for us this time, due to the support of locals, reinvestment and expansion by Barbadian Sir Kyffin a locally owned company with regional and international potential have the foreign capital capacity to buy this local gem. It’s win win. We get much needed foreign exchange and the petroleum industry remains locally controlled. I could not wish for foreign control with memories of the pollution left at nedham’s point, and the agricultural sector in Christian church. Oh I keep forgetting that we suffer short memory syndrome.

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  8. F.A.Rudder February 28, 2017 at 2:39 pm

    Happy to know that Sir Kyffin has gotten his business off to a running start. He has been a mentor and I am proud to have seen his business practices pay off as of to this day. We did loose the best of our agriculture land to foreign identity but that was at our own fault. We would wish that the joint partnership be a promising one and be viable in producing a positive outcome. Wishing this venture years of productive incentive

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