Total SA and a black empowerment company, Calulo Resources, have teamed up in a sales and marketing deal to form Total Renaissance.
Total SA and black empowerment company Calulo Resources have teamed up in a sales and marketing deal to form Total Renaissance.
This new venture will handle some of Total’s existing activities, including the wholesale sales and marketing of fuel, but it will not become involved in retailing and service stations. Calulo owns 51 per cent of the new company, while Total has 49 per cent.
Calulo’s chief executive, Mkhuseli Faku, told Business Day that the deal was worth "hundreds of millions of rands", but would not give an exact figure.
"This joint venture is Calulo’s biggest deal to date, but we have a range of other deals on the services side of the fuels business," he said.
"We move close to 500 million litres of fuel by road a year, and also move fuel by rail and by ship.
"We have recently been involved in bringing fuel into SA to help deal with the current diesel shortage."
Calulo is also seeking an equity stake in Total SA. Faku said he was holding talks with Total, with the aim of acquiring a "double figures" equity stake in its SA operations.
Total spokesman Khulu Ntshingila said there were equity negotiations with "more than one empowerment entity".
