Grindrod and Vitol Bunker Merger Granted Clearance by EC

Vitol has bought a 50% stake in Cockett Marine Oil for an undisclosed amount.

JSE listed Grindrod Limited (Grindrod) and Dutch firm Vitol Holding B.V. (Vitol) have been granted clearance under European Commission (EC) merger procedure, for joint control of Singaporean company Cockett Marine Oil (Pte) Ltd and South African company Cockett Marine Oil South Africa (Pty) Ltd.

Grindrod, whose headquarters are in Durban, South Africa, sold a 50% interest in marine fuels supplier and reseller Cockett, to Vitol, one of the world's largest independent energy trading houses, for an undisclosed sum.

Cockett, who say they deliver approximately 5 million tonnes of bunker fuel a year, has been looking to increase its physical supply locations around the globe and "Vitol is the ideal partner to support Cockett's global growth strategy", said Karl Beeson, Managing Director of Cockett Marine Oil.

The merger follows the companies' joint venture called Leopard Tankers, which will see four medium range product tankers built in Korea and commercially operated by the Vitol Group when they are delivered in the first half of 2013.

Ideal Partnership

Martyn Wade, CEO of Grindrod Shipping said: "This investment represents the ideal partnership of an experienced ship owner with a first class commercial operator having access to a substantial cargo base.

"The ships represent cutting edge design and incorporate the latest engine technologies allowing significant savings in fuel consumption and running costs," he added.

Grindrod's Group Financial Director, Andrew Waller, said in an interview in March, that the cost of medium range tankers from Korea was between $36 million to $38 million dollars and that following the Cockett transaction, "we are expecting the business to grow substantially going forward, so in due course you will see the amount for which Vitol have paid for their 50% share."

Grindrod describes itself as an integrated logistics and shipping service supplier focused on the movement of dry bulk and liquid bulk commodities.

Vitol, which has headquarters in Rotterdam, Holland, and Geneva, Switzerland, shipped nearly 300 million tonnes of crude oil in 2011, with revenues of $297 billion in the same year.