Nasan Energies merger with Vivo Energy stations raises monopoly concerns in Namibia

Nasan Energies has denied claims of a relationship with Vivo Energy after competitors opposing the merger alleged it would create a monopoly rather than eliminate one.

Nasan agreed to acquire 53 Engen and Shell-branded service stations from Vivo Energy Namibia last year.

During a consultation yesterday, the Namibian Competition Commission (NaCC) said the sale was originally initiated by the commission following Vivo Energy’s global acquisition of Engen.

The regulator required Vivo to divest these service stations to prevent market dominance and ensure fair competition.

However, the merger has now been opposed because there are claims of a relationship between Nasan co-founder Miguel Hamutenya and Vitol, an energy and commodities company.

Regarding the relationship, the legal advocate for Nasan, Vanessa Kauta, says none of the owners of Nasan have shares in the companies involved in the merger.

“Neither of the owners of Nasan have any shares in Vivo or Engen or any of the direct companies,” says Kauta.

Hamutenya’s involvement

Hamutenya is currently the group chief executive of Millennium Investment Holdings.

Millennium has a partnership with the Vitol group through a venture called Validus Energy.

Vitol is also the major shareholder in Vivo Energy, which is now selling the 53 service stations.

Nasan is the one buying these service stations.

This relationship violates the NaCC’s requirement for an independent buyer.

Another key player in the merger is Jean-Blaise Ollomo, who, before joining Nasan in 2025, was the chief executive of Engen Namibia.

He oversaw the acquisition of Engen from Petronas by Vitol Emerald in 2023 in a move to reduce Engen’s market dominance.

Ollomo is now overseeing the transfer of service stations from Vitol to Nasan.

The NaCC imposed strict divestiture conditions to prevent a fuel monopoly after Vivo Energy purchased Engen Namibia in 2024.

One of those conditions was that the buyer must not have prior relationships with the merging parties (Vivo/Engen) and should be a locally owned business.

The alleged link between Hamutenya and Vitol/Vivo is what the NaCC is now investigating.

However, the competition commission does not limit the relationship to shareholding.

Kauta says Nasan is in compliance with legal obligations and is accountable to all dealers countrywide.

If approved, Nasan would become Namibia’s third-largest oil marketing company.

Monopoly concerns raised

NaCC preliminary findings presented by director of mergers and acquisitions Johannes Ashipala show that if the merger is allowed, it might lead to a combined market share of about 70%.

This is because the deal may maintain the dominance of Vivo Energy – and its owner, Vitol – while appearing to increase competition.

“The NaCC’s primary goal was to ensure the 53 stations went to a company with less than 10% market share and no pre-existing relationship with the merging parties,” Ashipala says.

Findings show that the deal might create a hidden monopoly because the buyer (Nasan) and the seller (Vivo) are allegedly linked through the Vitol group.

Ashipala adds that there are also concerns around actual security of supply.

“We said in 2023 we wanted them to give away about 20% so that at the end they have a market share of about 40%, but the data is indicating that the new entrant will only acquire about 10%,” says Ashipala.

He attributes the discrepancy to alleged diversion of fuel volumes away from service stations earmarked for divestment.

“The emerging party has diverted the volumes away from the service stations that are to be divested. So, that is where the difference is coming from,” says Ashipala.

He adds that reduced sales at affected stations could create employment risks.

“Their profit will be reduced, they will be forced to find alternatives. . . which means reduction in staff,” he says.

He further warns that one dominant player could control up to 70% of the retail market and as much as 80 to 90% of intra-wholesale supply.

“If there is any operational disruption, if there is any logistical failure, this will have nationwide consequences,” he says.

Nasan defends the transaction

Nasan Energies co-founder Sean Tobias has welcomed the regulator’s review, saying it is a positive step for the industry.
“This is a significant milestone.

The conditions set by the commission allowed for and prioritised local ownership in an industry traditionally dominated by foreign entities,” Tobias says.

Ollomo says he left Engen in 2024, and there is no relationship between him and the entities from which the service stations are being acquired that could contravene the NaCC laws.

He adds that since the initial sale engagement, Nasan has made operational progress.

“Since its last engagement with dealers in 2025, Nasan has achieved several significant milestones in advancing its retail and operational strategy,” he says.

According to Nasan, the company is finalising a new retail visual identity as well as the rollout of Nasan-branded materials across the company’s network.

“In parallel, Nasan successfully implemented and completed the go-live of its SAP S/4Hana Cloud enterprise resource planning platform, strengthening operational efficiency, financial controls and reporting capabilities,” says Ollomo.

He adds that Nasan had concluded negotiations with its main fuel supplier.

“These developments mark important progress in Nasan’s transformation journey and reinforce its commitment to building a strong, modern and competitive retail network,” says Ollomo.

NaCC is set to make a decision in March.

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