announced<\/a> on Monday that they had reached agreements to buy Preem\u2019s parent in an all-cash transaction, the value of which was not disclosed.<\/p>\nThe deal is subject to customary closing conditions and the receipt of regulatory approvals and is expected to be completed in the second half of 2025.<\/p>\n
Preem owns two major fuel manufacturing facilities in Sweden, at Lysekil and Gothenburg. The two facilities have a combined capacity of 352,000 barrels per day (bpd), which is 80% of Sweden\u2019s refining capacity, and the ability to co-process renewable feedstock.<\/p>\n
\u201cPrimarily located in Scandinavia, Preem\u2019s assets are highly complementary to VARO\u2019s existing operations across northwest Europe with limited overlap,\u201d the company backed by Carlyle and Vitol said.<\/p>\n
Vitol\u2019s CEO Russell Hardy, who is also Supervisory Board member of VARO, said:<\/p>\n
\u201cThe company will be Europe\u2019s second largest producer of biofuels \u2013 which are key to decarbonising transport in Europe. It will benefit from access to Vitol\u2019s network and global expertise.\u201d<\/p>\n
The company will also be the largest co-processor of renewable feedstocks in Europe. On completion, the combined group will rank in the top five largest producers of Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF) globally. It will be Europe\u2019s second largest renewable fuel producer and the top producer in Sweden, Varo said.<\/p>\n
Following the completion of the transaction, Varo will use the decarbonization expertise and proven track record of both organizations \u201cto support national and European energy transition agendas and drive progress toward a low-carbon future.\u201d<\/p>\n
Preem also operates seven renewable storage facilities in Sweden, Germany, the Netherlands, and Spain, with a combined capacity of 2.1 million barrels.<\/p>\n
By Charles Kennedy for Oilprice.com<\/p>\n
More Top Reads From Oilprice.com<\/p>\n","protected":false},"excerpt":{"rendered":"Varo Energy, owned by the world\u2019s biggest independent oil trader, Vitol, and the Carlyle Group, has reached a…\n","protected":false},"author":2,"featured_media":26818,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[125],"tags":[3264,16408,16407,197,16406,16409,16410,5685,16405,158],"class_list":["post-26817","post","type-post","status-publish","format-standard","has-post-thumbnail","category-vitol","tag-acquisition","tag-biofuel","tag-carlyle","tag-europe","tag-preem","tag-refinery","tag-renewable","tag-sweden","tag-varo-energy","tag-vitol"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116183543510676109","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/26817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=26817"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/26817\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/26818"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=26817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=26817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=26817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}