Engen and Vivo Energy together creates Africa’s dominant fuel group
Cape Town – Fuel companies, Engen and Vivo Energy are merging their business operations after Petronas sold its 74% shareholding in Engen to Vivo. This created a massive pan-African company operating nearly 4000 Engen and Shell service stations acorss 28 African countries.
The announcement was made on Tuesday 21 May completing a process that was first revealed in February last year. During the time since the first announcement, the parties engaged authorities in all the affected jurisdictions to obtain regulatory approval and to fulfill conditions precedent across the seven markets where Engen operates.
The Phembani Group, Engen’s BEE shareholder, remains a 21% shareholder in Engen South Africa while employees can now participate in a 5% employee ownership programme.
Vivo Energy Group Chief Executive, Stan Mittelman and Engen’s Managing Director, Seelan Naidoo, said in a joint statement “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 for growth and success in the years to come.”
“As part of the transaction, Vivo Energy has committed to invest a significant amount of capital to maintain and grow Engen’s operations in South Africa, ensuring a modern and efficient business. We have also committed to major investments in renewable solar power generation projects to help transform the economy, while supporting a just energy transition for the country.”
Vivo Energy’s Chairman, Chris Bake, commented “I would like to thank PETRONAS for its stewardship of Engen over the last 25+ years. Together with the Phembani Group, they have grown Engen into a valuable corporate citizen. 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.”
