Engen embraces La Réunion economy with acquisition

Wednesday, 01 December 2010

Engen Réunion MD Mr Hérve Maziau says Engen has met all local regulatory and legislative conditions for the acquisition. "The team in Reunion are looking forward to joining the Engen family and building up the business, harnessing the expertise and potential to grow the business in Réunion."

Wayne Hartmann, GM of Engen International Business Division (Engen IBD), says the broader Engen group has committed to supporting the affiliate with its vision for mutually beneficial regional growth.

"Engen combines a proud record of operational excellence and dynamism with a strong commitment to the economies, communities and environments in which we operate," he says. "We are confident that our involvement will contribute meaningfully to the local economy."

Existing presence

The Réunion operation has a network of 32 retail service stations, as well as commercial business relationships and a major lubricants marketing business. Mr Maziau says Engen plans to embark on a complete re-imaging programme as soon as is practically possible, in which the Caltex brand will be replaced by the Engen brand and livery.

Besides the improvements and business integration that can be expected in the short to medium term, Mr Maziau assures staff, motorists and business partners that it is business as usual. "The operation will carry on trading as a going concern; existing staff and relationships will be retained; and a supply plan is developed to ensure uninterrupted product and service supply."

African vision

The acquisition is in line with Engen's programme of mutually-beneficial sustainable growth opportunities in sub-Saharan Africa and the Indian Ocean Islands, where it has a footprint in 21 countries and export agreements to 30, says Nizam Salleh, MD and CEO of Engen Petroleum Limited.

"Our EPIC 2016 Vision for growth focuses exclusively on Sub Saharan Africa," he explains. "This is a massive stride forward in our programme for sustainable growth in the region that will work to the common benefit of company and the countries involved. The potential for development and growth here is enormous and we are very proud to be part of it," he says.

Phased rollout

Engen plans a phased rollout over several months for the rest of the operations, as other sales and purchase agreements (SPAs) in the packaged acquisition obtain in-country government and regulatory approvals.

Other SPAs with Chevron (trading as Caltex in some countries) include Zimbabwe, Zambia, Malawi and Mozambique in Southern Africa; Tanzania in Eastern Africa; as well as Mauritius in the Indian Ocean Islands.

For further media enquiries please contact Engen Group Communications Manager Tania Landsberg on + (27) 83 393 3398 or email tania.landsberg@engenoil.com