3.6bn BP deal to mop up 3000 petrol stations

BP, the oil giant that points to the poor returns it makes on selling petrol as evidence that it is not to blame for high fuel prices, has bought another 3000 petrol stations throughout Europe in a deal thought to be worth about e 6 billion (3.65 billion).

The move, which will give BP control of Germany's biggest fuel retailer, also involves BP slashing its stake in Germany's leading gas distributor at a time of high gas prices and forecasts for continued strong demand on the Continent.

The twin effects of the deal will cast further doubt on the oil companies' claims that they are in no way responsible for high petrol prices, which they say are the result of fuel tax.

BP cited the $21 million (14 million) loss made at its fuel operations in the first quarter of this year to defend itself against claims that it was profiteering from high oil prices at motorists' expense. But doubts remain in some circles about how these figures are calculated.

Under the terms of the deal, BP will buy 51% of Veba Oil from utility group E.ON. Veba owns Aral, Germany's biggest fuel retailer. In return, E.ON will take 51% of Gelsenberg, which holds BP's 25.5% interest in Ruhrgas, Germany's leading gas distributor.

BP will also pay E.ON $1.63 billion cash and inherit $950 million of debt.

However, BP is widely expected to seize the remaining 49% of Veba under a two-way put option agreement that comes into force on 1 April next year. This allows BP to transfer its remaining Ruhrgas stake to E.ON, along with a $340 million cash payment, in return for the rest of Veba.

BP said it could generate annual savings of about $200 million if it held 100% of Veba.

This would involve job losses among Veba's 8750 staff, though a BP spokeswoman declined to estimate how many.

The British oil producer believes it can offset the cash cost of acquiring all of Veba by selling Veba's upstream business, which produces about 160,000 barrels of oil equivalent a day.

Aral has 2560 petrol stations in Germany, delivering 18% of the retail fuel market based on volume. It has a further 450 stations in Austria, Poland, Czech Republic, Slovakia, Hungary and Luxembourg.

The BP spokeswoman said selling fuel remained a "particular problem" but emphasised that the retail outlets would allow BP to sell a host of products, improving the return on its investment.

Veba also has interests in five German refineries with a net capacity of more than 300,000 barrels a day and petrochemical facilities.

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