Kinshasa - The deal, subject to approval by the DRC Government, is in line with Engen's long-term growth strategies to become one of the leading marketers of petroleum products in sub-Saharan Africa.
Once approved, the transaction will see Engen acquiring the shares in Shell DRC as a going concern. It is the company's intention that all employees of the DRC enterprise will retain their current positions.
Engen currently enjoys the largest share of market in South Africa and has a significant presence in 14 African countries.
Engen Managing Director and CEO, Rashid Yusof said: “The deal is very much in line with our long-term growth strategy and business plan to extend our investments in Africa.”
Engen currently operates in the DRC via a joint venture with Total, a Belgian company known as Aristea. Engen has a 49% stake in Aristea whose major business is petroleum marketing in DRC under the brand name Fina. Aristea holds 60% of Fina Congo and is the managing partner, with the remaining 40% owned by the DRC government.
Yusof said that the South African company ‘welcomes' all SRDC employees and emphasised that the value of the investment would not be realised without them and they will be encouraged to stay in their positions, Yusof stresses.
Xavier Le Mintier, the Executive Vice President of Shell Oil Products Africa adds: “Shell's divestment is in accordance with the Shell Group strategy to focus on more upstream and profitable downstream business. The decision is consistent with managing Shell's portfolio to deliver maximum value to its shareholders as part of our global view. We take our responsibilities to the DRC government, economy and people very seriously. With this in mind, we have undergone a rigorous process to examine all the options to ensure the continuity and sustainability of the business going forward.
Shell is happy to have been able to secure for the DRC government a partner that has similar values and has expressed a strong will to strengthen the partnership with the Government for growing the company further.
Concludes Yusof: “We have been interested in this specific deal for some time and consider it a great opportunity to build our network in Africa”. He said that the company's partnership with the DRC government should open opportunities for growing the business substantially over time, unlocking major value for shareholders and the company's employees.
