Varo Energy, a company jointly owned by Vitol, the world’s largest independent oil trader, and the Carlyle Group, has finalized a deal to purchase Swedish refiner Preem, a leader in renewable fuel production.
After over a year of exclusive negotiations, Varo Energy, where Carlyle holds a 66.66% stake and Vitol owns 33.33%, announced on Monday that it has agreed to acquire Preem’s parent company in an all-cash transaction. The financial details of the deal have not been disclosed.
The acquisition is pending regulatory approvals and is expected to close in the second half of 2025.
Preem operates two major refining facilities in Sweden, located in Lysekil and Gothenburg, with a combined capacity of 352,000 barrels per day (bpd). These facilities account for 80% of Sweden’s refining capacity and are equipped to process renewable feedstocks.
“Preem’s assets, primarily based in Scandinavia, complement Varo’s existing operations across northwest Europe, with minimal overlap,” said the company, backed by Carlyle and Vitol.
Vitol’s CEO, Russell Hardy, who also serves as a Supervisory Board member of Varo, stated: “The deal positions the company as Europe’s second-largest biofuel producer, essential for decarbonizing transport across the region. It will also leverage Vitol’s global network and expertise.”
Following the acquisition, the combined entity will become Europe’s largest processor of renewable feedstocks and rank among the top five global producers of Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF). It will also be the leading renewable fuel producer in Sweden.
Varo emphasized that the acquisition would enable the company to utilize both organizations’ decarbonization expertise to support national and European energy transition goals and further progress towards a low-carbon future.
In addition to its refining facilities, Preem operates seven renewable storage sites across Sweden, Germany, the Netherlands, and Spain, with a total storage capacity of 2.1 million barrels.
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