SADC Correspondent | Oct 30, 2018 | 0
Chemical maker, Omnia acquires a 90% stake in Umongo
Omnia, a supplier of specialised chemicals and services to the agriculture, mining and chemical industries, in a bid to strengthen its chemical business’ Protea Chemicals sub-Saharan strategy has acquired a 90% stake in Umongo Petroleum, African Business Review said this week.
Former Group Managing director of Omnia, Rod Humphris said that the group has a strong balance sheet. “Over the last two years we have been in a cash-positive position, we saw a gap and acquiring Umongo as it will be good for our chemicals division, because the base oil is an important product range we are not involved in,” he said.
With a wealth of experience in the distribution of chemicals and polymers in sub-Saharan African countries such as South Africa, Namibia and Kenya. The addition of Umongo’s base oil, additive and lubricant business to Protea Chemicals will broaden its current product offering and create multiple opportunities for it to grow and expand its business.
“We’re in transition phase at the moment,” Humphris said. Humphris retired effective the end of May to become nonexecutive chairman of the company from June 1. Omnia Fertilizer MD Adriaan de Lange succeeded him.
Umongo has supply and distribution agreements for the supply of additives from Chevron Oronite and base oils from Chevron Products Company into the South African and sub-Saharan Africa markets.
Umongo recently acquired 100% of Orbichem Petrochemicals, the distributor of the Ergon range of products in South Africa and sub-Saharan Africa. Omnia will acquire the 90% stake in Umongo for N$780-million, which will see the company become a subsidiary of Omnia, falling under the chemicals division. However, Umongo will continue to operate as a stand-alone entity within Omnia.
Based in Johannesburg, South Africa and with operations in 15 African countries and six international countries, Omnia has more than six decades of experience with units in Australasia, Brazil and Mauritius and clients in other regions such as Europe, South America and South-East Asia.
Omnia’s Chemical services business and Umongo’s business is viewed as a perfect complement to Chevron Oronite, which develops and markets quality additives that improve the performance of fuels and lubricants while Chevron Products Company provides a reliable global base oils supply through its production facilities.
Umongo, based in KwaZulu-Natal,distributes additives, base oils and related lubricant products to multinational oil majors, including Chevron.