CEFC China Energy Company Ltd, a private Chinese investment group, has agreed to buy 51% of KMG International, a unit of Kazakhstan's state oil and gas company, which owns refining and fuel distribution assets in Europe, according to a statement of the company quoted by Reuters.

KMG International is the former Rompetrol Group, which was built by Romanian investor Dinu Patriciu, who sold it to KazMunayGas in 2007, in a USD 2.7 billion deal, the biggest private transaction in Romania’s history.

KMG International owns the Petromidia refinery at the Black Sea, Romania’s biggest oil refinery, which can process 5 million tons of raw material per year. The group also owns a petrochemical plant near the refinery. It also has the second largest fuel distribution network in Romania, under the Rompetrol brand. The group also owns service station networks in Moldova, Bulgaria, Georgia, Ukraine, France, and Spain. In Western Europe, the Group operates under the Dyneff brand.

The transaction is part of USD 4 billion package of deals between China and Kazakhstan, which was signed on Monday in Beijing. The transaction hasn’t been yet confirmed by KMG International representatives.

According to a CEFC source quoted by Reuters, the Chinese group plans to invest in expanding KMG International’s fuel distribution network from 1,000 units to 3,000 units.

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editor@romania-insider.com