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In a move that will shake up the African energy industry, Engen and Vivo Energy have announced their intention to combine their respective African businesses to create one of Africa's largest energy distribution companies. The move brings together over 3,900 service stations and more than two billion litres of storage capacity across 27 African countries, solidifying the companies' presence on the continent and making them a force to be reckoned with. Engen, the market leader in South Africa with around 1,300 service stations across seven African countries, will join forces with Vivo Energy, a major pan-African retailer and distributor of fuels and lubricants with over 2,600 service stations across 23 African countries using the Engen and Shell brands. The transaction will result in PETRONAS selling its 74% shareholding in Engen to Vivo Energy, with The Phembani Group remaining invested as a 21% shareholder in the South African business. The deal will also benefit Engen employees through a newly implemented 5% employee share ownership program. CEO of Vivo Energy, Stan Mittelman, said, "Completion of this transaction, which reunites the Engen brand across Africa, will be a step change in our growth and represents a significant commitment to the South African market whilst enhancing Vivo Energy's portfolio in other important markets." Seelan Naidoo, Managing Director and CEO of Engen, added, "This is an exciting opportunity for Engen to build on its market-leading position in South Africa and a number of southern African countries. It allows us to leverage our strong brand equity, extensive supply chain capability, and unrivalled customer service to be a leading contributor to Vivo Energy and Vitol's ambition to build a stronger and more successful pan-African energy champion." The transaction is still pending regulatory approvals and the fulfilment of conditions precedent, but with the backing of financial advisors Rand Merchant Bank and Standard Bank (a division of FirstRand Bank Limited) for Vivo Energy, and Morgan Stanley and Rothschild & Co for PETRONAS, the future looks bright for this newly formed energy giant. The African energy landscape just got a whole lot more exciting, and with Engen and Vivo Energy at the forefront, customers can expect a level of service and quality that will set the standard for the rest of the industry.

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