Engen, Vivo Energy merge to create a Pan-African energy company
The combined retail arm will result in a service station network of 3,900 outlets across 27 countries in the region.
Engen and Vivo Energy have announced a combination of their respective African businesses to create one of Africa’s largest energy distribution companies.
The combined group will have over 3,900 service stations and more than two billion litres of storage capacity across 27 African countries. Engen leads the South African market with nearly 1,300 forecourts across seven African countries while Vivo Energy is a major pan-African retailer and distributor with over 2,600 outlets across 23 nations from both the Engen and Shell brands.
“This is an exciting opportunity for Engen to build on its market leading position in South Africa and a number of southern African countries. 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,” said Seelan Naidoo, Managing Director and CEO of Engen.
PETRONAS will sell its 74% shareholding in Engen to Vivo Energy at completion. The Phembani Group, PETRONAS’ long-standing partner in Africa and Engen’s B-BBEE shareholder, is continuing its association with Engen and will remain invested as a 21% shareholder in the South African business.
“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,” added Stan Mittelman, CEO of Vivo Energy.
The transaction, which is currently pending regulatory approvals and fulfilment of conditions precedent, will further benefit employees of Engen through a newly implemented 5% employee share ownership programme, resulting in Engen South Africa being 26% owned by previously disadvantaged parties.
