Oil giant merger threat to oil distribution firms
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• Fuel distribution firms Wincanton, Tankfreight and Linkman face the possibility of losing lucrative fuel distribution contracts following a decision by fuel companies Elf, Gulf and Murco to merge.
Wincanton carries fuel for Elf; Tankfreight distributes for Gulf; and Linkman does some work for Murco.
Last week, the fuel firms announced they are to merge and, although all have said it will be business as usual in the short term, it is thought that the new company will eventually seek the same rationalisation from fuel distribution it aims to get from the rest of the business.
The firms expect to save around £50m from the merger and have already announced there will be around 500 job losses in the areas of refining and administration.
One area in which the new company expects to save money is through slimming down its service station network.
None of the spokesmen for the merging firms is prepared to speculate on the policies of the merged concern, but the end result is bound to be fewer deliveries although this may be some time away.
Subject to final agreement, the merger is expected to be completed early next year; none of the distribution firms were available for comment.