Varo Energy and Argo have signed a merger agreement to form a major independent oil company in north west Europe.
The enlarged company will combine downstream activities of both firms, with a total workforce of more than 1,500 employees and an expected total annual throughput of 16 million m3. It will comprise almost 50 tank terminals in five countries, refineries in Switzerland and Germany as well as distribution and marketing businesses across north west Europe.
The company will be owned in equal parts by three parties, the current shareholders of Argos – Reggeborgh and Atlas Inves, Carlyle International Energy Partners and international energy and commodities company Vitol.
The company will be named Varo Energy and will be led by Roger Brown, the current CEO of Varo Energy. The agreement is subject to regulatory approval and is scheduled for completion in the third quarter of 2015.
Henry Holterman, CEO of Reggeborgh, says: ‘This merger means that we have taken another important step towards the achievement of our ambitions. We look forward to developing Varo Energy with our new partners into an important European energy player.’
Argos, based in Rotterdam, is a leading independent trading, storage and distribution company of petroleum products and biofuels. It has 21 tank terminals in Benelux, France, Germany and Switzerland. Varo Energy refines, stores and distributes oil products in Germany and Switzerland, and owns or has interests in refineries in both countries.
Roger Brown, Varo Energy CEO adds: ‘The merger brings together two strong and complementary companies to create a major downstream business in north west Europe, which will serve our customers reliably along the fuels value chain. I am very much looking forward to leading this new and highly skilled team.’