The MSR Fuel Bottle Company will pay $25 million to resolve a $25-million diesel fuel supplier agreement with its competitors, a transaction that could lead to a merger or acquisition of rival suppliers.
The deal, announced Friday by MSR and the companies that make it, comes as diesel fuel supplies have plunged amid the wildfires ravaging the Southeast.
A consortium of diesel fuel suppliers announced in August that it had closed a deal with MSR to supply fuel to MSR trucks that run on diesel.
But the consortium, based in Germany, had been selling fuel at about $3.25 a gallon.MSR said in a statement that it will “continue to work with all of its competitors in a collaborative manner to ensure the continued supply of fuel to its customers.”
It said the diesel fuel consortium was a “good value for money” for MSR.MHR said the deal also includes a “fiduciary duty” provision that protects the interests of the diesel suppliers.
It did not specify how much the duty protects.