EMEA News
Varo Energy Targets 10% of Europe's Bunker Market with Preem Acquisition
Swiss Varo Energy has announced that it has reached an agreement to fully acquire Swedish energy firm Preem following 15 months of discussions.
With this acquisition, Varo Energy aims to strengthen its presence in the market and supply 10% of Europe's road and marine fuel demand, it said in a statement on its website on Monday.
Preem operates two refineries in Sweden with a combined capacity of 352,000 b/d, accounting for 80% of the country's refining capacity. The acquisition will increase Varo's total fuel production capacity to 530,000 b/d.
In addition to strengthening its conventional fuel output, Varo will gain from Preem’s existing biofuel production.
Since 2010, Preem has invested nearly $1 billion to expand its renewable fuel capabilities. Its current biofuel production stands at 300,000 mt/year, set to rise to 1.3 million mt/year following the upgrade of its Synsat diesel plant.
The company will also become the largest co-processor of renewable feedstocks in Europe.
Upon completion of the deal, the combined group will rank among the world’s top five producers of Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF). It will also become Europe’s second-largest renewable fuel producer and the leading producer in Sweden.
Varo Energy already has a partnership with Orim Energy to promote marine biofuel supply in the ARA region.
The acquisition is expected to be completed by the second half of 2025 following regulatory approvals.
