SOUTH Africa’s leading petroleum products marketer, Engen is set to expand its foothold in Zimbabwe after acquiring the sub-Saharan Africa interests of United States oil major, Chevron.

The company announced it had concluded the acquisition of 100 percent of Chevron’s downstream marketing companies in Malawi, Mauritius, Mozambique, Reunion, Zambia and Zimbabwe.

Management said the deal is subject to regulatory approval in the respective countries but did not anticipate any hitches in that regard adding all employees would be retained.

 “This is a wonderful opportunity to extend our investments in line with our growth objectives. We are committed to the companies involved and the people and believe they will be instrumental in our success - we are positive about the prospects for growth and development,” Engen chief executive Ahmad Nizam Salleh said.

The deal is part of Engen’s growth strategy in the sub-region which saw the company move into Burundi, the DRC, Lesotho as well as Rwanda in recent years.

“This is a significant investment and we expect the transaction will contribute in excess of 500 million litres a year towards our vision to be a ‘Champion in Africa’ by 2016,” Salleh added.

Engen has been operating in Zimbabwe since 1996 but a US$16 million bid to take over the local interests of Shell in December last year failed after empowerment groups claimed the deal contravened the country’s indigenization laws.

Owned 80 percent by PETRONAS, Malaysia’s national oil company with the balance controlled by black South Africans, Engen enjoys the largest share of market in Africa’s biggest economy.

The company has a significant presence in 17 other African countries in the region.