Baar ZG/Stockholm – VARO Energy is acquiring 100 percent of the share capital of Preem. The fuel producer has 80 percent of Sweden’s refinery capacity. This makes VARO the second-largest producer of renewable fuels in Europe.
(CONNECT) VARO Energy is acquiring the Stockholm-based companies Preem Holding AB and Preem AB(Preem). The Baar-based company will acquire the shares from the parent company Corral Petroleum Holdings AB in an all-cash transaction, according to a statement.
The agreement follows a competitive merger and acquisition process commissioned by Preem owner Sheikh Mohammed Hussein Al Amoudi in October 2023. VARO was involved from the beginning. Negotiations have been conducted exclusively with VARO since August 2024.
As one of the largest energy companies in Scandinavia, Preem covers over 40 percent of Sweden’s energy requirements for the transportation sector and around a quarter of Scandinavia’s energy requirements. The two refineries owned by Preem produce 80 percent of Sweden’s total capacity. Since 2010, the company has invested almost 1 billion dollars in the production of renewable fuels and in CO2 reduction along the value chain.
VARO states that thanks to these investments, Preem’s current production of renewable fuels will increase from 0.3 tons to 1.3 million tons per year. In addition, a number of other renewable fuel projects are in the pipeline. The merged group will have a large geographic footprint in key European markets, the statement said, with global feedstock sourcing capabilities and an expanded customer base.
“The acquisition of Preem is of crucial importance for VARO,” VARO CEO Dev Sanyal is quoted as saying. Following completion of the acquisition, the merged group “will become the second largest producer of renewable fuels in Europe with a production capacity of 530,000 barrels per day for conventional fuels and an extensive distribution and storage network in the most important European markets”. ce/mm
