Petroleum and energy company Vivo Energy, which represents oil multinational Shell’s brand of fuels and lubricants in Africa, will gain 300 service stations across nine African countries after it agreed to buys shares in oil multinational Engen International Holdings from Engen Holdings in exchange for a shareholding in Vivo Energy.
The transaction, which is subject to regulatory approval, will expand Vivo’s network to more than 2 100 services stations across 24 African countries.
The new markets include the Democratic Republic of Congo, Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi. Engen's Kenya operations, where Vivo Energy already operates, are also part of the transaction.
Engen will retain its interest in Engen Petroleum Limited – the South African business and refinery – and Engen's businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho.
“Engen is a strong and well respected brand and complements our existing business. Upon completion of the transaction, we look forward to welcoming the Engen team into Vivo Energy and working with them to grow our combined business. Our vision is to become the most respected energy business in Africa,” says Vivo Energy CEO Christian Chammas.
Vivo Energy is jointly owned by the energy and commodities company Vitol and the Africa-focused private investment firm Helios Investment Partners.