Vivo Energy, Engen to marry

Engen and Vivo Energy announced the completion of the transaction to combine their respective businesses, with Petronas on Tuesday selling its 74% shareholding to Vivo Energy, creating a pan-African champion.

In a joint statement to the media, Vivo Energy Group chief executive Stan Mittelman and Engen managing director and chief executive Seelan Naidoo said: “We are delighted to conclude the transaction, and will now work together to take the ‘best of both’ from Engen and Vivo Energy, positioning the combined organisation well for growth and success in the years to come.”

They said they have committed to major investments in solar power generation projects to help transform the economy, while supporting a just energy transition for the country.

The combined group will have over 3 900 service stations and more than two billion litres of storage capacity across 27 African countries.

Engen is the clear market leader in South Africa and has around 1 300 service stations across seven African countries.

Vivo Energy is a major pan-African retailer and distributor of fuels and lubricants to retail and commercial customers, with over 2 600 service stations across 23 African countries using the Engen and Shell brands.

“The combination of Vivo Energy and Engen to create a pan-African champion not only benefits customers in South Africa and across the continent, but also sets up the new group to achieve its vision to be Africa’s leading and most respected energy business,” the statement from Mittelman and Naidoo continued.

Petronas will sell its 74% shareholding in Engen to Vivo Energy at completion.

The transaction will benefit employees of Engen through a newly implemented 5% employee share ownership programme, which will result in 26% of Engen South Africa being owned by previously disadvantaged parties.

It is reported that Phembani Group, Engen’s shareholder since 1999, is maintaining a 21% stake in Engen.