Vivo Energy, a major pan-African retailer and distributor of fuels and lubricants, and Engen, which boasts around 1,300 service stations across the continent, have combined their respective African businesses to create one of the largest energy distribution companies in Africa
The new group will have more than 3,900 service stations and more than two billion litres of storage capacity across 27 African countries.
Petronas will sell its 74% shareholding in Engen to Vivo Energy at completion, while Phembani Group will continue its strong association with Engen and remain invested as a 21% shareholder in the South African business.
Stan Mittelman, CEO of Vivo Energy, said, “Vivo Energy’s focus has been to invest to grow our business, and I am proud that we have more than doubled the size of our network since our 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 opportunity 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.”
Seelan Naidoo, managing director and CEO of Engen, added, “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.
Engen is excited to become part of the enlarged business and this will set up our business to be stronger and more successful than ever before.”
Chris Bake, chair of Vivo Energy, commented, “Vivo Energy has been a success story since its inception. It has grown consistently, both organically and by investing in modern quality assets.
It has a highly professional and capable management team with a deep understanding of Africa’s unique energy requirements. Engen is South Africa’s market-leader, and this powerful combination will benefit customers in South Africa and across the continent.”
