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Shell, Engen merger threatens fuel supply monopoly

Friday, November 24, 2023 | 1100 Views |

Shell Filling Station PIC: MORERI SEJAKGOMO

The proposed 74% acquisition of Engen Botswana shares by Vivo Energy, a Shell-branded fuel company, is raising red flags amongst authorities due to concerns about competition in Botswana's fuel industry.

The Competition and Consumer Authority (CCA), a government body overseeing anti-competitive practices, has expressed reservations about the merger, pointing out the dominant market share of the two companies in the country's energy landscape.

According to CCA officials, the unhindered merger of Vivo Energy and Engen Botswana could lead to unprecedented market power, posing a threat to healthy competition in the fuel sector.

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Shell, Engen merger threatens fuel supply monopoly

The proposed 74% acquisition of Engen Botswana shares by Vivo Energy, a Shell-branded fuel company, is raising red flags amongst authorities due to concerns about competition in Botswana's fuel industry.