Engen in home stretch with Chevron acquisition in Africa and Indian Ocean islands

Wednesday, 02 February 2010

African downstream petroleum powerhouse Engen has concluded its purchase of two more country operations from Chevron in Africa and the Indian Ocean islands – in Mauritius and Tanzania.

This brings to five (5) the number of successful acquisitions from its competitor, in terms of a package of seven (7) sales and purchase agreements signed in August 2010. Having taken over Chevron’s interests in Reunion, Malawi and Zambia along with the most recent additions, Engen has still to conclude its acquisitions in Zimbabwe and Mozambique.

“These will be finalised once the necessary regulatory approvals are given,” says Wayne Hartmann, General Manager, Engen International Business Development. “We are confident that our efforts to comply with the relevant legislation will be successful, and look forward to finalising the deals.”

EPIC goals

With this batch of acquisitions, Engen has grown its footprint to 22 countries in the region – representing a giant stride forward in its goal to be a major regional player in terms of its 10-year corporate growth strategy, EPIC 2016.

“These acquisitions represent major progress in our vision for mutually-beneficial sustainable growth in the region,” says Nizam Salleh, MD and CEO of Engen Petroleum Limited. “It is an enormous boost to our plans, and we hope to make a meaningful contribution to the region’s economic and industrial development.”

The road ahead

With the cut and thrust of negotiations behind it for the five operations, the company looks forward to welcoming all new staff into Team Engen, says Hartmann. “We are very excited indeed and look forward to building the businesses, harnessing the expertise and potential of our staff and contributing to the economies of these countries.”

He says the broader Engen group has committed to supporting the affiliates. “Engen combines a proud record of operational excellence and dynamism with a strong commitment to the economies, communities and environments in which we operate.”

Existing presence

Engen has an established presence in four of the countries in question - Zimbabwe, Zambia, Mozambique and Tanzania, but is new to Malawi, Reunion and Mauritius.

In most countries, it will take over Chevron’s in-country retail service station network, while in others it will only take control of its commercial operations. Where service stations are involved, Engen will stage a complete re-imaging, involving local suppliers where possible.

In selected cases, Chevron’s assets also comprise depots and terminals. In all instances, Engen will take over office buildings and existing supplier and dealer relationships.

Besides the improvements and business integration that can be expected in the short to medium term, Hartmann assures staff, motorists and business partners that the business operations, retail and commercial networks, logistics and storage arrangements will continue as before.

“Operations will carry on trading as going concerns; existing staff and relationships will be retained; and in-country supply plans have been developed to ensure uninterrupted product and service supply.”

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