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 the number of successful acquisitions from its competitor, in terms of a package of seven 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, GM, 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."Footprint in 22 African countries
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."
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.Re-imaging of service stations
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 has assured 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."