Omnia is buying 90% of Umongo Petroleum for R780m, adding new product lines and geographies to expand the diversified chemicals group. The deal, which still has to be given the green light by SA’s competition authorities, will add 6% to Omnia’s overall annual turnover of about R16bn. It is effective from March. "We don’t expect any issues [around the transaction. Umongo] covers a gap in our range of products," Omnia CEO Rod Humphris said on Thursday. Umongo, based in KwaZulu-Natal, distributes additives, base oils and related petroleum, oil and lubricant products to multinational oil majors, including Chevron and independent producers in SA and sub-Saharan Africa. Umongo’s most recent annual turnover of R1bn was about 25% of Omnia’s chemicals business turnover, Humphris said. It is a growing business and has a net margin of about 8%. "We think the acquisition is a reasonably good deal. It expands Omnia’s current product offering in a market with attractive growth fundamentals [and] ...

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