Engen, 80 percent owned by Malaysias PETRONAS with the balance controlled by black South Africans, announced last week that it had sealed a deal to takeover 100 percent of Chevrons downstream marketing companies in Malawi, Mauritius, Mozambique, Reunion, Zambia and Zimbabwe.
This is a wonderful opportunity to extend our investments in line with our growth objectives. We are committed to the companies involved and the people and believe they will be instrumental in our success – we are positive about the prospects for growth and development, Engen chief executive Ahmad Nizam Salleh said.
The deal that Salleh said was subject to regulatory approval in the respective countries is part of Engens growth strategy in the sub-region which saw the company move into Burundi, the DRC, Lesotho as well as Rwanda in recent years.
Management was confident authorities in the various countries where Chevron was operating would okay the acquisition.
Engen, which dominates the petroleum products market in South Africa, has been operating in Zimbabwe since 1996 and had initially looked to expand its activities in the Zimbabwean market by taking over the interests of Shell.
But a US$16 million bid to take over the Zimbabwean interests of Shell in December last year failed after empowerment groups claimed the deal contravened the countrys economic indigenisation laws. Engen operates in 17 other African countries in the region.
Post published in: News