VARO Energy announces acquisition of Preem

VARO Energy has reached an agreement to acquire Preem through the purchase of 100% of the share capital of the parent company, Corral Petroleum Holdings in an all-cash transaction.
Subject to customary closing conditions and the receipt of regulatory approvals the transaction is expected to be completed in the second half of 2025.
VARO has been engaged in this process for over 15 months, having entered exclusivity in August 2024.
Preem is one of the largest energy companies in Scandinavia. The company plays a critical role in the region’s energy security, providing over 40% of Sweden’s and around a quarter of Scandinavia’s energy needs for transportation. It serves customers in 17 countries across Europe.
An early mover in renewable fuel production, Preem has invested heavily since 2010 in the production of renewable fuels and initiatives aimed at reducing the carbon intensity throughout the value chain.
As a result of these investments, Preem’s current renewable fuel production of 0.3 mtpa will rise to 1.3 mtpa with the Synsat diesel plant upgrade enabling up to 40% co-processing of renewable feedstocks.
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, which equates to 80% of Sweden’s refining capacity, and the ability to co-process renewable feedstock.
Dev Sanyal, CEO of VARO, said: “The acquisition of Preem is transformational for VARO. On completion, we will become Europe’s second largest renewable fuel producer with an extensive distribution and storage network across major European markets with conventional fuel production capacity of 530,000 barrels per day.”
Marcel van Poecke, chairman of VARO and chairman of energy at Carlyle, said: “This acquisition provides material value creation opportunities through disciplined investment in future growth projects, while enhancing VARO’s ability to deliver the reliable and secure energy that Europe needs.”
Russell Hardy, supervisory board member of VARO and CEO, Vitol, said: “The company will be Europe’s second largest producer of biofuels – which are key to decarbonising transport in Europe. It will benefit from access to Vitol’s network and global expertise.”