Vitol to buy Noble’s oil liquid business for USD 580 million
Date: 2017-10-23   Author: Satarupa De  Category: #market

Vitol to buy Noble’s oil liquid business for USD 580 million

Embattled commodity trader, Noble Group has recently agreed to sell its U.S. based oil business to Vitol in a bid to pare down debt, amidst speculations of former having faced a major blow in the third quarter. Reportedly, Vitol, claimed to be the largest oil trader across the globe, has inked this deal with Noble for USD 580 million. Singapore listed Noble is reported to have incurred a net loss between USD 1.1 billion to USD 1.25 billion in the last three months till September.

Once pegged the title of Asia’s largest commodity trader, Noble Group, cite reliable sources, has been struggling hard to sell all its oil liquid business as a part of its debt cutting strategy. The proposed deal with Vitol Group is the latest addition to the string of disposals as the global energy supplier pursue to shrink its business portfolio. In this regard, experts claim that Noble’s recent agreement with Mercuria, this year, pertaining to its selling of North America based gas & power business comes on the heels of Noble’s large focus on Asian coal trading.

Reportedly, Noble’s crisis period has been spanning over the past two years and the turmoil, allegedly, has led to fund raising, credit downgrades, management changes, and a series of write-downs. As per reliable sources, Noble’s market value, has downscaled from USD 6 billion recorded in February 2015 to USD 400 million.

Noble Group has always been a leading name in global physical oil industry, trading refined and crude oil products. However, over the past two years, as reports cite, its operations shrank primarily on account of liquidity constraints and higher price trends. The company has been consolidating its wholesale businesses across Caribbean countries and North American belt. While no assurance can be given regarding the outcome of these negotiations pertaining to Noble’s current industry position, the deal is however certain to reinforce Vitol’s position in the oil market, cite reports.



About Author


Satarupa De

Satarupa De

Satarupa currently works as a content writer at AlgosOnline. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writing and now ...

Read More

More from Satarupa


Post Recommendents

System Integration Market by Manufacturers, Regions, Type and Application Forecast to 2025
Author: Partha Ray

Market Study Report, LLC, has added an exhaustive research study of the ' System Integration market', detailing every single market driver and intricately analyzing the business vertical. This ' System Integration market' study will aid in seeking...


Corporate Performance Management (CPM) Software Market Future Challenges and Industry Growth Outlook 2025
Author: Partha Ray

The ' Corporate Performance Management (CPM) Software market' report added recently by Market Study Report, LLC, evaluates the industry in terms of market size, market share, revenue estimation, and geographical outlook. The study also delivers a ...


Testing as a Service (TaaS) Market Analysis, Revenue, Price, Market Share, Growth Rate, Forecast to 2025
Author: Partha Ray

The ' Testing as a Service (TaaS) market' report Added by Market Study Report, LLC, enumerates information about the industry in terms of market share, market size, revenue forecasts, and regional outlook. The report further illustrates competitiv...