Vivo Energy, the company that operates the well-known Engen stations, and Mount Meru Group have signed a purchase agreement, under which Mount Meru bought shares in Vivo Energy Rwanda, allowing it to acquire 40 fuel stations.
This agreement will also allow Mount Meru to acquire 50 fuel stations in Malawi, according to a joint statement released by the two companies.
Vivo Energy identified Mount Meru Group as a strong partner to bring meaningful investment, and one familiar with the local and regional market in both Rwanda and Malawi.
Mount Meru Group first entered Rwanda in 2007, while in Malawi it began operations in 2013, and it also has a strong track record in distributing petroleum products across Africa. This transaction will allow the Group to further expand its presence in both markets.
Atul Mittal, Director, Mount Meru Group, said: “We are proud to be growing our existing, long-standing presence in Rwanda and Malawi. We are committed to investing and growing these businesses and on completion of the transaction look forward to strengthening relationships with channel partners, customers and employees while expanding our reliable service, customer satisfaction, and environmental responsibility to more consumers.”
Stan Mittelman, CEO, Vivo Energy, said: “We are pleased to have signed this agreement with Mount Meru Group. This decision is not a reflection of how our Rwanda and Malawi businesses have performed, it reflects our ongoing commitment to ensuring every part of our portfolio has the ownership best placed to take it forward. Mount Meru brings deep local and regional expertise and a genuine ambition to invest in these markets, and we are confident this transaction provides a strong opportunity for our employees, dealers and customers in both countries. We have valued working closely with the Mount Meru team throughout this process and look forward to a smooth transition.”
The companies stated that while this agreement is awaiting approval from the relevant authorities, they expect the approval process to be completed within the coming months.
They also said that in the meantime, before approval, Vivo Energy Rwanda and Vivo Energy Malawi will continue operating as usual, and assure customers they will continue receiving quality service.
Once this agreement is approved, the 40 Engen-branded stations in Rwanda currently belonging to Vivo Energy Rwanda will be acquired by Mount Meru and will also be rebranded.
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