Petrefuel Set To Acquire Royale Energy
Petrefuel Set To Acquire Royale Energy. Petrefuel Holdings, a subsidiary of Petredec Onshore, is set to acquire 100% of Royale Energy with the current shareholders of Royal Holdings opting to take up a 15% share in the jointly merged entities. The Agreement is subject to the fulfilment of certain suspensive conditions expected to be completed by the end of August 2023.
The addition of Royale Energy to Petrefuel’s portfolio expands its geographic footprint into Gauteng. Limpopo and the North West adds two liquid fuels storage terminals on the Transnet fuel pipeline. Petrefuel currently operates across the Western Cape, Eastern Cape, KwaZulu-Natal, Free State, and the Northern Cape. Founded in 2003, Royale Energy is one of the largest privately owned licensed petroleum wholesale distributors in South Africa, operating an extensive network of retail filling stations, major storage facilities in Gauteng and strategically placed smaller depots in Olifantsfontein, Hammanskraal and Polokwane.
Commenting on the acquisition, Head of Downstream at Petredec Onshore, James Bullen said, “The South African liquid fuels landscape is currently being redefined following a number of significant domestic and international events over the past few years. We welcome the team from Royale Energy to Petrefuel and look forward to leveraging the combined strengths of the two businesses. Royale has made good progress over the past two decades and established itself as one of South Africa’s leading independent operators and its addition to the Petrefuel portfolio will add significantly to our current business.”
“We are confident that the proposed transaction will enable Royale Energy to continue on the growth pathway it has pursued for the past 20 years. We believe the sale to Petredec is advantageous to all stakeholders of our business, not least our loyal customers who we expect to benefit from the increased scale of our operations which as part of the Petrefuel business are now nationwide” said Stephan Nothnagel, CEO at Royale Energy.
