Engen-affiliated fuel retailers in Botswana are pressing for firm guarantees about the future of their businesses as ownership of Engen Botswana moves to a new consortium in a regulatory-driven sale.
The transaction, which will transfer control from Vivo Energy to a group led by Mount Meru Group and businessman Ramachandran Ottapathu, has left retailers worried about business continuity, lease security, brand identity and the protection of long-term investments, according to the Botswana Petroleum Retailers Association.
“Retailers simply want clarity and assurance that their businesses, investments and contractual relationships will remain protected regardless of changes at shareholder or ownership level,” said Tebogo Nametsagang, public relations officer for the association.
The concerns come as the proposed takeover awaits final approval. In May 2024, Vivo Energy — backed by the multinational Vitol Group — acquired Engen Limited globally from Malaysia’s state oil company, PETRONAS. Because Engen Limited held a 70 percent stake in Engen Botswana, Vivo Energy automatically inherited control of the local network.
But Vivo Energy already operated the nationwide network of Shell-branded service stations across Botswana. The Competition and Consumer Authority determined that this created a horizontal overlap, giving Vivo Energy dominant control over the two largest competing fuel distribution chains. The regulator warned that the merger would stifle competition in both the consumer retail market and the commercial business-to-business segment, including bulk supplies to the mining, construction and road haulage sectors.
Vivo Energy’s chief executive, Stan Mittelman, has said that while Engen Botswana is a robust asset the company would have been proud to retain, it respects the competition authority’s final determination.
The association said Engen Marketing Botswana has told retailers that the proposed transaction is not expected to negatively affect current operations and that stakeholder engagement will continue. Ottapathu, the incoming investor, has similarly indicated that the intention is for business to continue as usual.
“Future expansion and investment decisions, however, will depend on prevailing business and market conditions,” Nametsagang added.
The acquiring consortium, Fusion Spark Proprietary Limited, combines Mount Meru Group — a Dubai-headquartered energy and logistics operator active in more than a dozen African countries — with Ottapathu, widely known as the chief executive of the Choppies supermarket chain.
In a recent statement, Ottapathu described his entry into the fuel sector as a deliberate move to leverage his retail expertise and understanding of Botswana’s economy, paired with Mount Meru’s experience in downstream petroleum, logistics, lubricants and infrastructure.
The petroleum retailers’ association said it remains committed to constructive engagement with all stakeholders to ensure a sustainable, fair and stable retail sector that protects citizen investment and long-term industry growth.
