Engen is selling about 300 service stations in 10 countries outside SA to Vivo Energy for an undisclosed amount, Vivo’s Dutch parent Vitol said in a statement on Monday.
Engen, which is 74% owned by Malaysian oil group Petronas with the balance owned by empowerment partner Phembani, will retain its refinery along with its service stations in SA, Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho.
Vivo, which represents Shell in various African countries, will expand into the Democratic Republic of Congo, Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi by acquiring Engen’s operations in those countries.
Vivo will also acquire Engen’s Kenyan operations, adding them to its existing Kenyan network.
The deal will grow Vivo Energy’s network to more than 2,100 service stations in 24 African markets.
"Africa is a very important part of our business and we are committed to continuing to invest across the continent," Vitol chairman and CEO Ian Taylor said.