Grindrod Limited, the integrated logistics and shipping business, has agreed to sell a 50% interest in Cockett Marine Oil to Vitol, the largest independent energy trading business in the world.
The consideration amount is undisclosed and the transaction is subject to competition commission approval.
Cockett is one of the leading value-added resellers and physical marine fuel suppliers in the world with a network of offices across Europe, Americas and Far East providing a global service to shipping clients. It delivers approximately five million tonnes of marine fuels annually.
Further to this transaction, the companies have formed a joint venture company called Leopard Tankers and will build four medium-range product tankers in Korea which will deliver in the first half of 2013. The ships will be commercially operated within the Vitol Group.
Ian Taylor, president and CEO of the Vitol Group, said: “In January we acquired an interest in their (Grindrod’s) Maputo coal terminal and created a coal trading joint-venture. Now we have broadened our relationship with the purchase of 50% of Cockett….and our joint agreement to build four new product tankers.”
This announcement follows the finalisation of the agreement effective January 1, in which Vitol acquires from Grindrod a 35% interest in the company which owns the Maputo coal terminal concession. In addition Vitol and Grindrod announced their intention to combine their respective sub-Saharan coal trading businesses (65% Vitol/35% Grindrod).
