Vivo Energy finalises its acquisition of Engen service stations

Vivo Energy, which operates the Shell service station franchise in Africa, has finalised its acquisition of Engen service stations. The purchase means that Vivo adds almost 10% more service stations to its network, but crucially opens up eight new country markets.

The acquisition, first announced in December 2017, will add service stations in over additional 225 Engen-branded service stations to Vivo Energy’s network. Vivo Energy now has over 2,000 service stations, across 23 African markets. The eight new markets for Vivo Energy are Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe. Engen’s Kenya operations (where Vivo Energy already operates) is the ninth country included in the transaction. Engen is continuing its discussions with the government in the Democratic Republic of Congo regarding the transfer of the subsidiary holding Engen’s DRC-related interests.

The move confirms that there are two dominant service station players in Africa: Total, with over 3,000 service stations, and Vivo Energy. Furthermore, both Total and Vivo Energy typically have more modern forecourts – more likely to include retail, fast food, mechanics and car wash services. Vivo, for example, has partnered with Pizza Hut in Côte d’Ivoire as a result of owner Yum! Brands’ partnership with Vivo across Africa. Yum! Brands also owns KFC.

Vivo’s coverage is shown below. New markets acquired via Engen are shown in blue.

 

Vivo Energy network