Chronicle Editor
Senior Business Reporter
GOVERNMENT has picked Independent Petroleum Group (IPG) as the prospective strategic partner for the merger of state-owned petroleum companies, Petrotrade (Pvt) Ltd and Genesis Energy.
In 2019, Cabinet approved the merger of Petrotrade (Pvt) Ltd and Genesis Energy to form a single entity that would be partially privatised.
Giving her post-Cabinet media briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said there were three merging options on the table.
They included the purchase of assets, business purchase or forming a new company.
However, the Government opted for the business purchase merging method as it dovetails with the objective of incurring the least restructuring cost and also preserving value.
“Cabinet also approved Independent Petroleum Group (IPG) as the prospective strategic partner to the merged petroleum company, subject to successful negotiations.
The Transaction Advisor proposed three merging methods or options, that is, purchase of assets, business purchase and establishment of a new company.
“Cabinet wishes to inform the public that it approved the business purchase merging method since it fulfils the Government’s objective of merging Petrotrade and Genesis Energy at the least restructuring cost.
“The option will preserve the value created to date by both entities over the years and will ensure minimum disruption to the current operations,” she said.
Petrotrade — a private company wholly-owned by the Government — was formed following the unbundling of the National Oil Company of Zimbabwe in 2011.
The entity is responsible for downstream activities including the selling of petroleum and lubricants through bulk sales and service stations.
Online Reporter