Dublin-based oil and gas distributor DCC has agreed to acquire Pace Fuelcare for €27.7 million (£23.4 million) in a deal subject to clearance from the UK Office of Fair Trading.

Dublin-based oil and gas distributor DCC has agreed to acquire Pace Fuelcare for €27.7 million (£23.4 million) in a deal subject to clearance from the UK Office of Fair Trading.

The deal comes as energy minister Charles Hendry called for an inquiry into the recent rises in fuel costs and distribution problems.

In 2008 DCC acquired Southern Counties Fuels Holdings for €9.75 million and bought fuel distributor Brogan for €47.2 million in 2009.

British oil distribution business Pace Fuelcare was previously owned by another distribution company, MRH (GB).

In the year to September 2010, Pace Fuelcare, which services the south of England, sold 515 million litres of fuel to independent retail petrol stations and other commercial, industrial, agricultural and domestic customers.

Tommy Breen, chief executive of DCC comments: ‘The acquisition of Pace Fuelcare will further enhance DCC Energy’s oil distribution business in Britain, bringing its market share to approximately 15 per cent.

‘Pace has a particular strength in the distribution of transport fuels in southern England and will be complementary to DCC Energy’s existing business.’

Pace employs 240 people and operates from 20 locations across England.