Omnia is acquiring 90% of Umongo Petroleum for R780m, the Omnia announced on Thursday morning.
The remaining 10% will remain with an investment company, Autumn Storm, whose shareholders include Umongo CEO Boston Moonsamy.
Umongo was founded by its chairman, Mahmoud Homayoun, a former Caltex engineer who was appointed the South African agent of Chevron Oronite’s lubricants and fuel additives in 1998.
The company is based in Umhlanga Ridge, KwaZulu-Natal, and employs 28 people.
Besides selling Chevron products, Umongo is also an agent for BASF and Evonic oil products. It is in the process of acquiring Orbichem Petrochemicals, which distributes Ergon oil products in sub-Saharan Africa.
Omnia said the acquisition of Umongo would complement its Protea Chemicals business.
"The addition of a bulk volume base oil, additive and lubricant business to Protea Chemicals, will broaden its current product offering and create new opportunities to grow the business in SA and sub-Saharan Africa," the company said in its statement.
In terms of the agreement, Moonsamy will remain as CEO for five years and chairman Homayoun will remain involved in Umongo as a member of the board and as a specialist adviser for four years. Other key members of the Umongo management team will remain with the business.