Botswana has been excluded from a multi-million dollar deal in which Shell-branded fuels distributor, Vivo Energy is taking over the operations of its rivals, Engen in ten African countries.
According to details of the share purchase deal released yesterday, Vivo is buying Engen operations in nine African countries where it did not have a presence. Vivo is also buying Engen’s business in Kenya where it already operates.
The new markets for Vivo Energy included in the transaction are DR Congo, Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi. Upon completion of this transaction, which is still subject to regulatory approval, the acquisition of the nine new countries will see over 300 Engen-branded service stations added to Vivo Energy’s network. This will take Vivo Energy’s total presence to over 2,100 service stations, across 24 African markets. Apart from Botswana, Engen Holdings will retain its interest in six other African countries including South Africa, Mauritius, Ghana, Namibia, Swaziland and Lesotho.
Commenting on the transaction Christian Chammas, chief executive officer (CEO), Vivo Energy said: “In our first six years our shareholders have invested to grow Vivo Energy, increasing our network from around 1,300 to over 1,800 service stations and adding over 400 new and refurbished shops and quick service restaurant offers. I am delighted with today’s agreement with Engen which, subject to regulatory approval, will add a number of new African markets to our business so that we can offer high quality products and services
Yusa Hassan, managing director and CEO of Engen said: “Engen is excited to enter into this strategic undertaking with Vivo Energy, which is clearly aligned with our growth aspirations in Africa. We will seek to build on each other’s strengths from this collaboration for the benefit of our customers across the continent”.
Currently, with over 1,800 service stations across 15 African markets, Vivo Energy sources, distributes, markets and supplies Shell-branded fuels and lubricants to retail and commercial customers across the continent.
Vivo Energy is jointly owned by the energy and commodities company, Vitol and the Africa-focused private investment firm Helios Investment Partners. In Botswana, Vivo Energy was established in 2012 but the Shell brand has been in the country for over 100 years.
Vivo Energy Botswana has a fuels storage capacity of 3,750 cubic metres and 80 service stations, with many offering Shell Cards and convenience retail stores. “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. Today’s announcement takes us one step closer to achieving that goal,” Chammas added.