BP PLC (LSE:BP.) could get an unexpected boost to its value from the takeover toing and froing currently underway for Japanese 7 Eleven owner Seven & I, according to US bank Citi.
Canadian firm and Circle K owner ACT [Couche-Tard] has made a friendly offer for Seven & I, a move that Citi says amplifies its view that the retail marketing businesses within the global integrated oil companies (IOCs) are underappreciated.
Petrol forecourts are seen taking a growing share of retail consumer spending, especially as charging EVs will mean people will have to stay in them longer.
“We have long argued that the substantial role of IOCs in retail marketing - for those that have looked to retain these businesses - can now emerge as a competitive strength in an Energy Transition world.
“With what looks like a willingness to offer an industry-high 14 times EV/CFFO multiple, Couche-Tard looks to be sharing our view.
“BP, a constituent of Citi's European Focus List, is our preferred way to play this theme.”
Shares in BP eased 0.6% to 427.7p on Thursday.