Rektron Group Inc. (CSE: REK.U, FRA: F75) is set to significantly expand its presence in the Liquified Petroleum Gas (LPG) sector through a strategic acquisition of India’s R.K. Batra Group. The global commodity trading company announced today that it has signed a non-binding term sheet with Batra, marking a major step in its energy sector ambitions.
The proposed acquisition aims to leverage Batra’s established presence in India’s LPG market. Founded in 1981, Batra operates a fleet of over 950 LPG road tankers and owns two LPG bottling plants. The company also runs an LPG cylinder manufacturing plant that has been approved for supply to the U.S. market.
Rektron CEO Atanas Kolarov expressed enthusiasm about the deal, stating that it would significantly strengthen the company’s capabilities in the LPG sector. The acquisition is expected to scale Rektron’s energy ambitions and enhance its energy infrastructure assets.
Following the acquisition, the company has outlined several immediate plans to expand its operations. These include strategically increasing the size of its LPG fleet and doubling the capacity of both its bottling and manufacturing operations. Additionally, the company intends to develop LPG terminals along India’s western and eastern ports. To meet the growing demand for LPG in India, the company also plans to begin directly importing LPG into the country.
Under the terms of the agreement, Batra’s subsidiaries – Suryashakti Vessels Private Limited, Gill International Limited, and Shree Rama Roadways – will be merged into a single holding company. The acquisition will be structured either as a share swap or a combination of share swap and cash consideration.
Upon completion, Rektron Group Inc. will hold a 68% interest in the combined entity, with Batra retaining the remaining 32%. The deal is subject to satisfactory due diligence, negotiation and execution of a definitive agreement, and necessary regulatory approvals. The parties have set a target closing date of March 31, 2025.
This move aligns with Rektron’s focus on expanding its global commodity trading operations. The company, headquartered in Vancouver with its trading arm based in London, specializes in energy, metals, and energy transition commodities.
The acquisition of R.K. Batra Group positions Rektron to capitalize on the growing LPG demand in populous markets like India. As the deal progresses, investors and industry watchers will be keen to see how this strategic move shapes Rektron’s future in the global energy sector.