26 Jul REATILE GAZ MERGES WITH ENGEN’S SOUTH AFRICA LPG BUSINESS, RETAINING MAJORITY STAKE
Reatile Gaz (Pty) Ltd (“Reatile”) a subsidiary of Reatile Resources (Pty) Ltd that focuses on the LPG market, has concluded its merger with the South African LPG marketing interests of Engen Petroleum Ltd. The deal was signed, with the Minister of Energy Dipuo Peters officiating.
The transaction, which will gives Reatile an established footprint across the key centres within South Africa, has been given approval by the Competition Commission, and a number of other suspensive conditions have been met.
The merger involves an issue of new shares in Reatile, with Reatile Resources now holding 55% and Engen 45% of the equity.
Reatile was established in 2006, and has to date relied on organic growth. The company has focused on the industrial customer market, and by offering bulk installations it has secured a gradual growth in long-term contracts.
Through strong BEE credentials Reatile has further secured multiple refinery off-take agreements, which have enabled it to provide sustainable supplies to its contracted customers in the industrial, commercial and farming sectors.
Reatile has built a significant presence in Gauteng, with a smaller presence in the rest of the country. Engen, on the other hand, has a significant footprint both in Kwa-Zulu Natal and the Western Cape.
The merger will ensure continued supply of product to existing customers in these provinces, while the momentum of the merged businesses will provide a platform for sustainable growth into the future.
The combination of Reatile and Engen’s bulk LPG assets will unlock major synergies, which the company can leverage to unlock many more value propositions for its joint customer base.
Reatile Group chairman, Simphiwe Mehlomakulu, says the merger is part of Reatile’s strategy to build strategic and long-term partnerships with key industry players.
* Note to editors: Over the last five years Reatile Resources has also grown through its mining services business, Reatile Timrite, and in the chemical industry, through Reatile Paperkem. Reatile has established a small but formidable oil trading arm through the importation of crude oil, condensate and reformate.
PUBLISHED by Engen Petroleum Limited, to view the full press release click here