Vivo Energy Group (BRVM:SHEC, SEM:SHEL) is in the process of acquiring the assets of Engen (BSE:ENGEN) in nine African markets bringing the group’s presence in Africa from 15 to 24 countries.
The transaction is pending regulatory approval.
Upon completion of the transaction, nine new countries and more than 300 Engen-branded service stations will be added to Vivo Energy’s network, taking its total presence to more than 2,100 service stations across 24 African markets.
The new markets included in the transaction are DR Congo, Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi. Engen’s Kenya operations (where Vivo Energy already operates) are also part of this transaction.
Engen Holdings (Pty) Ltd will retain its interest in Engen Petroleum Limited (the South Africa business and refinery) and Engen’s businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho, which are not part of this transaction.
According to a statement released by the group on Monday, Mr Christian Chammas, the chief executive officer, 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...”
Mr Yusa Hassan, the managing director and CEO of Engen said Engen is excited to enter into this strategic undertaking with Vivo Energy, which is aligned with their 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”, He said.
Mr Gilbert Assi, the Vivo Energy Uganda managing director, said this appetite for investment and growth is visible in Vivo Energy Uganda.
“Since we joined the Vivo Energy group in February 2013, we have added more than 30 new stations to the Shell network and opened 10 new restaurants at our locations in Uganda. We have continued to deliver great results as the market share leader in retail since January 2014. It is our ambition to sustain this growth and continue to invest in our network.” Mr Assi said.
