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Vivo energy buys Engen oil in share swap deal
Vivo is the sole retailer of shell products in more than 15 African countries and was formed in 2011 as a partnership between Royal Dutch Shell, Vitol Group, a Dutch firm Vitol and Helios Investment Partners - an African private investment firm
A consumer buys gas at a Shell gas station

A consumer buys cooking gas at a Shell gas station

Vivo Energy, Royal Dutch Shell's downstream licensee has today announced a cash and share purchase deal with Engen holdings whose completion will see the oil retailer bring the number of petrol stations under it to 2100 with an additional 300.

 

The deal will also see Vivo energy expand to 9 countries, bringing the number of countries where Vivo operates to 24.

The new markets for Vivo Energy include DR Congo, Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi, plus Engen’s Kenya operation.(Vivo energy already operates in Kenya).

Commenting on the transaction Christian Chammas, CEO, Vivo Energy said the agreement with Engen which, subject to regulatory approval, will add a number of new African markets to Vivo's business so that they can offer high-quality products and services to significantly more customers.

While Engen's CEO Yusa Hassan said the strategic undertaking they have entered in with Vivo energy is  ''clearly aligned with our growth aspirations in Africa''

 

Vivo is the sole retailer of shell products in more than 15 African countries and was formed in 2011 as a partnership between Royal Dutch Shell, Vitol Group, a Dutch firm Vitol and Helios Investment Partners - an African private investment firm. Vitol and Helios Investment own 40 percent stake in the firm, each, while the 20 percent is owned by Shell.

 

Engen Holdings 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.

Engen left Uganda acrimoniously in 2013, and its operations were acquired by Oryx energy for 100 dollars.

By Collins Hinamundi.