ALEXANDRIA, Va.—Australian petroleum company Ampol has acquired New Zealand fuel distributor Z Energy in a deal valued at NZ $2 billion (US$1.38 billion).

Ampol will acquire 100% of the shares of Z Energy, New Zealand’s largest fuel company, for a cash offer price of NZ$3.78 per share. Ampol’s offer includes an adjustment mechanism where it will pay an additional cash amount of NZ 0.055¢ per share, per day for each calendar day that completion of the transaction extends beyond March 31, 2022, up to a limit of NZ 10¢ per share.

The Z Energy Board of Directors unanimously approved the deal.

"The Z board believes that the scheme represents fair value for Z shareholders," Z Energy chair Abby Foote said.

Shareholders are expected to vote on the deal early next year, with Ampol hoping to complete the transaction by the middle of 2022.