Engen and Vivo Energy have completed the transaction combining their respective businesses. Petronas is selling its 74% shareholding in Engen to Vivo Energy.

The Vivo Energy Group now operates more than 3 900 service stations and has storage capacity of over two billion litres across 28 African markets.

“We have committed to major investments in renewable solar power generation projects to help transform the economy while supporting a just energy transition for the country,” said Stan Mittelman, CEO of Vivo Energy Group, and Seelan Naidoo, Managing Director and CEO of Engen, in a joint statement.

Engen’s broad-based black economic empowerment shareholder, the Phembani Group, will keep a 21% stake and a new 5% employee share ownership programme will result in Engen South Africa being 26% owned by historically disadvantaged people.

“As part of the transaction, Vivo Energy has committed to investing a significant amount of capital expenditure to maintain and grow Engen’s operations in South Africa, ensuring a modern and efficient business for the benefit of the South African population,” said Mittelman and Naidoo.