Preem is sold to VARO
During autumn 2023 Corral Petroleum Holding AB, which is owned by Sheikh Mohammed H. Al-Amoudi via Moroncha Holdings Co. Ltd (“Moroncha”), announced that the company was carrying out a strategic review into the future of Preem AB (“Preem”). Preem is now sold to VARO Energy AG (“VARO”). Completion of the transaction is subject to customary regulatory approvals. The transaction is expected to close during the second half of 2025.
Preem is Sweden’s largest fuel company, and the transaction includes, among other things, Preem’s two refineries in Gothenburg and Lysekil, an extensive storage infrastructure and a network of 520 fuel stations. The company supplies a large part of Sweden’s industrial and transportation companies with fuel, heat and energy, and accounts for about 80 per cent of the Swedish production capacity, with approximately half of the country’s liquid fuels produced by Preem. Simultaneously, Preem has made the transition from fossil fuels to renewables its top priority. The turnover of Preem in 2024 was SEK 89.5 billion and Preem has approx. 1,500 employees.
VARO, headquartered in Switzerland, is an international diversified energy company that extracts, manufactures, blends, trades and distributes both conventional and sustainable energy sources.
Mannheimer Swartling advised Sheikh Mohammed H. Al-Amoudi in connection with the acquisition of Preem in 1994 (then named OK Petroleum) and has advised him and Moroncha concerning owner related matters and in connection with the transaction.
