Concerns raised as Engen takeover advances
Pauline Dikuelo | Monday August 3, 2026 06:00
The concerns emerged during a public hearing on Tuesday convened by the CCA as part of its assessment of the proposed merger. Fusion Spark is an entity in which business magnate, Ramachandran Ottapathu, has a 30% direct stake in, according to the latest CIPA records.
Fusion Spark is seeking to takeover Petroleum Holdings’ 70% stake in Engen Botswana Limited.
Speaking at the hearing, CCA CEO, Gideon Nkala, said the competition watchdog is gathering information from the merging parties and interested stakeholders before determining whether the transaction is likely to substantially lessen competition or negatively affect the public interest.
'This hearing is largely to seek information to help reach determination that will help protect competition,” he said. “We will carefully review what was said during the hearing and what has been submitted before making a ruling.”
Amongst the issues raised at the hearing was the manner in which Petroleum Holdings’ divestment process was conducted. Some stakeholders argued that the sale was not publicly advertised and that they only became aware of the opportunity after potential buyers had already expressed interest. They questioned whether all prospective investors had been afforded a fair opportunity to participate in the bidding process.
Lawyers representing the merging parties dismissed the claims, maintaining that the divestment process was publicly advertised after Petroleum Holdings decided to dispose of its entire stake. They said interested parties were invited to submit binding offers, adding that the objective was to identify a credible investor capable of sustaining competition in Botswana's petroleum market.
The hearing also brought into focus Fusion Spark's ownership structure. Stakeholders raised concerns over Ottapathu, arguing that his existing retail interests could eventually influence Engen's nationwide network of filling stations. Engen has 67 service stations across the country.
Currently, Fusion Spark's shareholding comprises Mount Meru Group (MMG) with 52.5%, Ramachandran Ottapathu with a direct 30% stake, and Surya Artha Holdings with a 17.5% stake. Surya Artha Holdings is wholly owned by Ramachandran Ottapathu.
Lawyers further explained that Surya Artha Holdings is a special purpose vehicle established solely to acquire and hold shares in Engen Botswana which will not undertake operational activities.
Some expressed fears that convenience stores operating at Engen service stations could in future be replaced by Choppies On the Go outlets because of Ram's association with the retail chain.
However the legal team assured that post-merger deal agreements would not be terminated, everything will continue as usual.
They also assured the CCA that the proposed transaction would not disrupt Engen Botswana's operations. Existing contracts with suppliers, transporters and independent dealers will remain in force, whilst fuel procurement arrangements and customer supply agreements would continue unchanged.
'Contractual negotiations will happen as they are due but it will be normal standard contractual terms. “Contracts that are ending will be negotiated as usual and dealers will continue to operate independently,” the lawyers said.
The acquiring parties said Mount Meru Group, which operates in 17 African countries, intends to establish a long-term presence in Botswana by investing in skills transfer, training local employees, and increasing citizen participation across the petroleum value chain.
Responding to concerns over competition, the legal team noted that Botswana's fuel industry remains regulated by the Botswana Energy Regulatory Authority, which caps wholesale and retail fuel margins, limiting the ability of operators to manipulate prices.