Malaysian oil and gas company Petronas has confirmed that it will sell its 74% stake in energy company, Engen to British downstream petroleum company Vivo Energy, creating one of Africa’s largest distribution companies.
The transaction will see Engen, which comprises 1,300 service stations in seven countries, integrated with Vivo Energy’s energy retail and distribution activities, which include the operation of over 2,600 service stations in 23 African countries.
The acquisition will enable the creation of a business managing over 3,900 service stations and over two billion liters of storage capacity in 27 African countries.
Stan Mittelman, CEO of Vivo Energy, stated that the deal forms efforts by the firm to expand its footprint across Africa’s energy sector, with the company doubling its size since formation in 2011.
“Four years ago, we acquired the Engen business in nine African markets, and have since worked to enhance and develop these. Vitol’s acquisition of 100% of Vivo Energy last year brings more opportunities to grow even faster. Completion of this transaction, which reunites the Engen brand across Africa, will be a step change in our growth and represents a significant commitment to the South African market whilst enhancing Vivo Energy’s portfolio in other important markets,” Mittelman stated.
For Engen, the acquisition enables the company to “build on its market leading position in South Africa and a number of southern African countries,” Engen Managing Director and CEO, Seelan Naidoo, stated, adding that, “It allows us to leverage our strong brand equity, leading retail footprint, extensive supply chain capability and unrivalled customer service to be a leading contributor to Vivo Energy and Vitol’s ambition to build a stronger and more successful pan-African energy champion.”