Staff Writer
The Namibian Competition Commission (NaCC) has approved, with conditions, the acquisition of a fuel retail business by Nasan Energies (Pty) Ltd.
The deal involves Nasan Energies acquiring assets operated by Vivo Energy Namibia Ltd and Engen Namibia (Pty) Ltd under a sale of assets agreement.
The transaction follows a condition set by the commission during its review of the merger between Vitol Emerald Bidco (Pty) Ltd and Engen Ltd in December 2023.
Nasan Energies was created to acquire and operate the assets and has not yet started operations.
The assets include 52 fuel service stations previously run under the Engen and Shell brands.
This is fewer than initially planned, as some sites no longer have supply agreements.
The commission classified the deal as a horizontal merger in the market for the wholesale supply of petrol and diesel to service stations.
It said the transaction could raise competition concerns, including the risk of a stronger market position.
However, the commission said the deal also brings public benefits. These include increased local ownership, support for small businesses, youth participation and job protection.
The deal is also expected to support economic activity through local reinvestment.
NaCC approved the transaction with conditions. Nasan Energies is not allowed to source fuel directly or indirectly from Vitol Holding II SA or related entities, including third parties that supply fuel from Vitol.
