Staff Reporter
Government has approved the merging of State owned companies, PetroTrade (Pvt) Ltd and Genesis Energies to form one entity which will be partially privatised.
Presenting at the 23rd Post Cabinet Briefing, Minister of Information, Publicity and Broadcasting Services, Monica Mutsvangwa said that Government had approved the merging and privatization of two state owned companies namely PetroTrade (Pvt) Ltd and Genesis Energy with Independent Petroleum group (IPG) pending success of the negotiations.
“The nation will recall that Cabinet in 2019 approved the merging of the state-owned petroleum companies, namely PetroTrade (Pvt) Ltd and Genesis Energy to form a single entity that would be partially privatized. Cabinet also approved Independent Petroleum Group (IPG) as the prospective strategic partner to the merged petroleum company, subject to successful negotiations. The transaction advisor proposed three merging methods or options that is, 1 purchase of assets, 2 Business purchase and 3 Establishment of a New Company,” Minister Mutsvangwa said.
Government further approved the Business Merging System as the method to be adopted in the merging of PetroTrade and Genesis Energy as it is cost effective. This option will also ensure minimum disruptions on the entities’ current activities whilst also preserving their value earned over the years.
“Cabinet wishes to inform the public that it approved the business purchase merging method since it fulfils the Government’s objectives of merging PetroTrade and Genesis Energy at the least restructuring cost. The option will preserve the value created to date by both entities over the years and will ensure minimum disruption to the current options,” said Mutsvangwa.
The Second Republic has demonstrated that it is a result oriented Government, that walks the talk. The partial privatisation and merging project of the State-owned petroleum companies was approved in 2019. Implementation has been set in motion in line with Vision2030 of attaining an Upper Middle Income Economy.
