Petrefuel Holdings, a subsidiary of Petredec Onshore, acquires 100% of Royale Energy, with existing Royal Holdings shareholders electing to acquire a 15% stake in the combined entities.
The agreement is subject to the fulfillment of certain conditions precedent which are expected to be completed by the end of August.
The addition of Royale Energy to Petrefuel’s portfolio expands its geographic footprint in Gauteng, Limpopo and the North West and adds two liquid fuel storage terminals to the Transnet fuel pipeline.
Petrefuel currently operates in the Western Cape, Eastern Cape, KwaZulu-Natal, Free State and Northern Cape.
Founded in 2003, Royale Energy is a privately owned licensed wholesale petroleum distributor in South Africa, operating an extensive network of retail service stations, large storage facilities in Gauteng and depots small ones strategically located in Olifantsfontein, Hammanskraal and Polokwane.
“South Africa’s liquid fuels landscape is currently being redefined following a number of major domestic and international events over the past few years. We welcome the Royale Energy team to Petrefuel and look forward to building on the strengths combined of the two companies.
“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 existing business,” said Petredec Onshore . James Bullen he says
“We are confident that the proposed transaction will enable Royale Energy to continue on the growth path it has followed over the past 20 years.
“We believe the sale to Petredec is advantageous for all stakeholders in our business, particularly our loyal customers who we expect will benefit from the increased scale of our operations, which as part of the business of Petrefuel are now all over the country,” adds the CEO of Royale Energy. Stephan Nothnagel.
