Engen and Vivo Energy have successfully completed their merger, creating a leading pan-African energy company. The transaction sees Petronas divesting its 74% shareholding in Engen to Vivo Energy, while Phembani Group retains its strategic 21% stake in Engen South Africa.
The combined Vivo Energy Group now boasts an extensive network of over 3,900 service stations and a storage capacity exceeding two billion litres across 28 African markets. This merger strengthens their position as a key player in the African energy sector.
In a joint statement, Stan Mittelman, CEO of Vivo Energy Group, and Seelan Naidoo, MD and CEO of Engen, expressed their enthusiasm for the merger and its potential for future growth and success.
“We are delighted to conclude the transaction and will now work together to take the ‘best of both’ from Engen and Vivo Energy, positioning the combined organisation well for growth and success in the years to come.”
Vivo Energy has pledged significant capital expenditure to maintain and expand Engen’s operations in South Africa, ensuring a modern and efficient business that benefits the South African population.
Approved with conditions
Following the announcement of the transaction in February 2023, all parties have been working hard to secure regulatory approvals and fulfilment of conditions precedent across the seven markets where Engen operates.
This includes major investments in renewable solar power generation projects, supporting the country’s economic transformation and just energy transition.
Phuthuma Nhleko, chairman and cofounder of Phembani Group, expressed excitement about continuing their involvement in Engen’s growth as a key player in South Africa’s economy.
“Having been invested in Engen since 1999, we are excited to continue our involvement, partnering in a strategic relationship with Vivo Energy in the next phase of Engen’s growth as a key player in South Africa’s economy.”
Evolution of African energy landscape
Chris Bake, chairman of Vivo Energy, thanked Petronas for their stewardship of Engen and highlighted the benefits of the merger for customers across Africa.
“The combination of Vivo Energy and Engen to create a pan-African champion not only benefits customers in South Africa and across the continent, but also sets up the new Group to achieve its vision to be Africa’s leading and most respected energy business.”
This landmark merger marks a significant step in the evolution of the African energy landscape, with the newly formed entity poised to play a pivotal role in meeting the continent’s growing energy needs while championing sustainable practices.
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