The following statement was issued by the Barbados Chamber of Commerce and Industry (BCCI) on the sale of the Barbados National Terminal Company Limited.
OVER THE PAST few weeks, one of the most talked-about issues within the business community in Barbados has been the sale of the Barbados National Terminal Co. Ltd (BNTCL) by Barbados National Oil Company Limited (BNOCL) to the Sol Group (SOL).
SOL along with Rubis Caribbean (Rubis) are both members of the Barbados Chamber of Commerce and Industry. The two lone bidders who have both put forward proposals for the purchase of the entity. The bidding process involved the review of several formats of ownership.
BCCI exists to help local businesses prosper and grow by facilitating a more enabling business environment in Barbados. As the premier private sector organisation representing the interests of businesses in Barbados, the BCCI felt it necessary to engage in a research assessment of the factors related to the sale, and to set forth a position on the much talked about sale.
The BCCI, based on all of the facts presented, including the details released by the Fair Trading Commission (FTC) has construed that the bidding process was properly managed. The subsequent selection of SOL as the preferred bidder, was based on the recommendation of KPMG, one of the world’s most respected management consulting firms, another BCCI member company, which acted as BNOCL’s advisors in this transaction.
The BCCI has also reached the view that the sale of the BNTCL does not appear to negatively impact the interest of the petroleum industry, the business community or the economy of Barbados. 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.
Below are several reasons which influenced our position on this issue:
“There is a precedent in Barbados for a fuel marketing company owning and operating a refinery and selling petroleum products to its competitors. Prior to the establishment of BNTCL, gasoline, diesel and heavy fuel oil (“HFO”) were produced by the Mobil refinery, and sold to the local marketing companies. Mobil was also a marketing company that sold petroleum products to its competitors whilst also operating the refinery.”
BCCI, taking the foregoing into consideration relative to the proposed sale of BNTCL to the Sol Group, is of the view that it will not adversely affect consumers. The BCCI remains committed to its members will continue to update the business community on our views on this matter and others from time to time.
Please find official correspondence on the transaction on the FTC website http://www.ftc.gov.bb/library/2017-02-16_bntcl_acquisition_public_information_document.pdf (PR)