Trade and Industry Editor

THE Exel brand was expected to continue spreading throughout SA, despite the planned merger of Sasol's refining and distribution network and the empowerment oil group, Exel CE Maurice Radebe said last night.

He was quashing rumours that once the merger had been completed all of Exel's service stations would be rebranded as Sasol outlets.

Although the deal had yet to secure the approval of the competition authorities, the aim is to implement the merger from the beginning of January, with a crude oil procurement, refining, distribution and marketing operation that will be 25% empowerment owned right across the value chain.

Radebe said it was important that the Exel brand should remain as it had made a mark on the SA market "and it epitomises the importance of empowerment in the oil industry. It is also known as a good brand for customer service and quality, but Sasol has a global presence and it made sense to maximise the value of the two brands."

Radebe said that his company's 189 branded stations would remain, and there would be more.

Sasol had earlier said it hoped for at least 300 service stations, which will include the Exel branded outlets, but Radebe said this target was too modest.

There were few Sasol branded service station outlets at the moment, but the company owned a number of sites which operated under other brands, and would be rebranded from the beginning of January, when Sasol's agreement with the other oil companies expired.

"Black shareholders have had a stake in the medium-sized business of Exel, but it is important for black shareholders to own 25% of the new multibillion rand business it is an important deepening of empowerment presence in the industry.

"We have been able to ensure the future of black shareholders in Exel, and the decision to keep the brand has been very important. This partnership with Sasol is one that works."

Exel has a R2bn turnover, with annual profit of R100m.

Radebe suggested that as well as empowerment through areas such as equity ownership, procurement and employment equity, there would also be opportunities to support black entrepreneurs through ownership of new Sasol and Exel branded service stations.

Oct 23 2003 07:34:50:000AM John Fraser Business Day 1st Edition