Mobil and Tetco Sign Memorandum of Understanding
10 August 1998
Mobil and Tetco Sign Memorandum of Understanding to Form Marketing Joint Venture in Texas
FAIRFAX, Va.--Aug. 10, 1998--Mobil and Tetco Stores have signed a non-binding memorandum of understanding to form a joint-venture Mobil fuels distributorship in Texas.
Negotiations are continuing and the companies expect the new venture to be operating by October 1, 1998.
Under the agreement, Tetco would operate the San Antonio-based venture. Exact ownership shares are subject to final negotiation and valuation.
The venture would include 145 Mobil-supplied service stations in the Dallas/Ft. Worth area and 173 Tetco-supplied service stations in the Dallas/Ft. Worth, Austin, San Antonio and East Texas markets, representing a combined total of nearly 400 million gallons of motor fuels.
As part of the agreement, 41 service stations with a total annual volume of 55 million gallons, not already branded Mobil, would be converted to the Mobil brand.
"This new alliance will enable us to generate volume and market share growth, realize operating efficiencies and strengthen the Mobil brand in the Dallas/Ft. Worth area and throughout Texas," said Percy Borbin, Mobil Manager, Texas/Louisiana Sales and Distribution. "We're committed to expanding the Mobil brand and this venture with Tetco, a well-established, customer-focused, growth-oriented distributor, will help us reach our goal of building a leadership position in Texas over the long term."
"We're delighted with the prospect of a new partnership with Mobil, a company with a powerful brand, technology leadership and marketing expertise," said Tom E. Turner Sr., Tetco Chief Executive Officer. "We look forward to growing our fuels and convenience store businesses together."
Tetco Stores, Inc. currently sells Mobil motor fuels in the San Antonio, Austin and Dallas areas. As part of the agreement, Mobil and Tetco would aim to convert existing convenience stores to the highly successful On the Run concept and build new On the Run stores.
Mobil Corporation, headquartered in Fairfax, is a leading global oil, natural gas, and petrochemical company with operations in more than 140 countries. In the U.S., the company markets gasoline in 28 states and the District of Columbia through more than 7,700 branded service stations.
Tetco, Inc., the parent company for Tetco Stores, is a privately held company owned by the Tom E. Turner family and headquartered in San Antonio, Texas. In addition to being a Mobil distributor, Tetco owns businesses engaged in trucking, warehousing and road construction.
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