Fuel retailers Gull and NPD have completed a merger to create a singular, large-scale business.

Gull, which was backed by private equity fund Allegro, has joined the longstanding South Island business NPD to make NPDGull’ The new entity is estimated to be worth $1 billion.

The group’s new CEO, Barry Sheridan, promised further investment in the future.

“We’ll significantly enhance the size of our North Island operations, enlarging our delivery fleet, acquiring more storage tank options, and bring on new team members in our operations and sales areas to leverage the strength of our network and supply chain,” he said.

NPDGull will now operate more than 240 locations across the country. The Commerce Commission cleared the merger in May.

Law firm Gilbert and Tobin, which assisted with the deal, said the merger is hugely significant for New Zealand.

“We are delighted to have supported longstanding client Allegro Funds on the financing of this important New Zealand fuel sector transaction,” said partner Gail Christopher. “The combination of Gull and NPD creates a fuel retail platform with significant national scale, underpinned by two complementary networks and well-known local brands.”