AFRICAN-BASED energy group, Engen, and pan-African retailer and distributor of high-quality fuels and lubricants, Vivo Energy, have successfully completed their merger, creating a dominant pan-African energy company. This transaction involves Malaysian energy giant Petronas divesting its 74 percent shareholding in Engen to Vivo Energy, while the South African Phembani Group retains its strategic 21 percent stake in Engen South Africa.
The newly combined Vivo Energy Group now operates an extensive network of over 3,900 service stations and boasts a storage capacity exceeding two billion litres across 28 African markets. This merger significantly strengthens their position 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. ‘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,’ they stated.
Vivo Energy has committed to substantial capital expenditure to maintain and expand Engen’s operations in South Africa. This investment aims to ensure a modern and efficient business that benefits the South African population.
Since announcing the transaction in February 2023, all parties have diligently worked to secure regulatory approvals and meet the conditions precedent across the seven markets where Engen operates. These efforts include major investments in renewable solar power generation projects, supporting economic transformation and a just energy transition in the country.
Phuthuma Nhleko, chairman and co-founder of Phembani Group, expressed excitement about continuing their involvement in Engen’s growth. ‘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,’ Nhleko said.
Chris Bake, chairman of Vivo Energy, thanked Petronas for their stewardship of Engen and highlighted the merger’s benefits 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,’ Bake noted.
This landmark merger marks a significant step in the evolution of the African energy landscape. The newly formed entity is poised to play a pivotal role in meeting the continent’s growing energy needs while championing sustainable practices.
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