Sasol wants a retail partner
The energy and chemicals conglomerate is talking to local groups in an attempt to increase market share at the pumps, says joint CEO
Energy and chemicals conglomerate Sasol was talking to other South African fuel retail groups about possible partnerships to expand its presence in the sector, joint CEO Stephen Cornell said on Monday. Sasol dropped out of the bidding for Chevron’s local assets in 2016. Over the past few years Caltex (the majority owner of Chevron SA) and Petronas (the majority owner of Engen), have sought buyers for their local assets. Government-owned PetroSA was one of the bidders for Engen. Suitors for Chevron SA are understood to include Total, Glencore, Gunvor, Puma and Sinopec. Cornell said Sasol produced about 30% of SA’s liquid fuels, but its retail market share was only 11%. It would grow organically and through acquisitions. Kobus Nell, a portfolio manager at Stanlib, said that although fuel retailing was a low-margin business, it delivered a relatively steady margin. It would make sense for Sasol to build up more critical mass in the sector. Sasol’s dividend for the six months to Decembe...
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