Shell has signed an agreement with Vitol Africa B.V. to sell its 20% shareholding in Vivo Energy for US$250 million. Completion of this transaction is expected during the first half of 2017, subject to regulatory approval. The sale is in line with Shell’s strategy to concentrate its Downstream operations where it can be most competitive.
As part of the transaction, a long-term brand licence agreement has been renewed with Vitol to ensure that the Shell brand will remain visible in more than 16 countries across Africa.
Vivo Energy, the Shell licensee in 16 African markets, was established on 1st December 2011 to distribute and market Shell-branded fuels and lubricants. Vivo Energy provides high quality solutions for motorists and businesses in Botswana, Burkina Faso, Cape Verde, Ghana, Guinea, Ivory Coast, Kenya, Mali, Mauritius, Madagascar, Morocco, Mozambique, Namibia, Senegal, Tunisia and Uganda.
Its retail offering includes fuels, lubricants, card services, shops and other non-fuel services (e.g. oil change and car wash). For businesses it provides fuels, lubricants and liquefied petroleum gas (LPG) to business customers across a range of sectors including marine, mining, and manufacturing. Jet fuel is sold to customers at 23 airports though a partnership with Vitol Aviation.
The company employs around 2,300 people, operates over 1,700 retail service stations under the Shell brand and has access to approximately 900,000 cubic metres of fuel storage capacity. Shell and Vivo Lubricants has blending capacity of around 124,000 metric tonnes at plants in six countries (Ghana, Guinea, Ivory Coast, Kenya, Morocco, and Tunisia) producing Shell branded lubricants.
Source: shell.com
