Switzerland-based VARO Energy Marketing AG (VARO) has announced the completion of its acquisition of Swedish oil refiner and fuel retailer Preem AB, marking the successful delivery of VARO Energy’s 2022 ONE VARO Transformation strategy. Following regulatory approvals, the formation of VAROPreem creates a new leading force in energy built on scale, capability, and track record.
The creation of VAROPreem brings together two complementary companies, VARO Energy and Preem AB.
A significant European energy major
With the acquisition complete, VAROPreem is now one of Europe’s most significant energy companies, combining deep industrial capabilities with global trading reach to serve mobility and industrial customers.
With extensive distribution infrastructure and access to more than 120 terminals, the new company owns six strategic manufacturing facilities.
In Sweden, it operates refineries in Lysekil and Gothenburg. In Germany, it holds a majority interest in both Neustadt and Vohburg refineries, and it owns Cressier in Switzerland and Coevorden in the Netherlands.
Combined, these six manufacturing hubs have a processing capacity of 530 kbd of conventional fuels, 1.3 mtpa of renewable fuels, and 450 GWh of biomethane.
VAROPreem also owns 100 percent share in elexon, a leading European developer of commercial vehicle charging stations.
Recent investments underline the company’s transition growth pipelines, including the commissioning of the Synsat facility at Lysekil, enabling the co-processing of renewable feedstocks and the Coevorden site producing biomethane and bioLNG.
VAROPreem will continue to operate Preem’s assets with a clear focus on security of supply, resilience, and continuity of service, reflecting their strategic role within Europe’s energy systems.
Build on the twin-engine strategy
VAROPreem will build on the proven “twin-engine” strategy, supplying both conventional (Engine 1) and sustainable (Engine 2) energies to mobility and industrial customers.
Introduced by VARO Energy in 2022, the five-year strategy targeted a tripling of EBITDA, with 50 percent of earnings from sustainable energies.
Following the transaction, VAROPreem expects earnings to be balanced across the two engines, with approximately half generated from conventional energies and half from sustainable energies.
The combined company brings together the industrial scale of an established energy producer with the innovation and capabilities of a renewables leader.
This scalable model supports disciplined investment and portfolio evolution in line with customer demand and market dynamics, while enhancing returns.
Strong financing and end-to-end delivery expertise
VAROPreem brings together strong financing and end-to-end delivery expertise to build and operate energy infrastructure in Europe.
With conventional demand remaining strong and sustainable energies expanding, the company is focused on two priorities: keeping supply reliable and funding the next wave of transition investments.
This approach, the company says, supports energy security now and accelerates progress toward a lower-carbon system.
The creation of VAROPreem marks a defining moment for VARO and Preem. Together, we have created one of Europe’s most significant energy companies, built on the dedication of colleagues whose work has made this possible. VAROPreem combines industrial scale, critical infrastructure, financial strength, and deep operational expertise to support energy security and resilience across Europe. With EBITDA now three times higher than when we began our transformation, we are no longer developing scale; we have achieved it. VAROPreem is well-positioned to deliver reliable, lower-carbon energy across Europe. And while this completion brings one chapter to a close, it also lays the foundations for the next phase of our growth, said Dev Sanyal, Group CEO of VAROPreem.
The newly established Executive Board brings together senior leaders from both VARO and Preem, combining expertise across manufacturing, commercial strategy, and operations, and reflecting the integration of the two companies.
The transaction was fully financed through a debt package that attracted 15 new lenders, expanding VAROPreem’s lending syndicate to 30 institutions. With participation from banks across Europe, the USA, Japan, Southeast Asia, the Middle East, and South Africa, the financing underscores broad market confidence in VAROPreem’s strategy and in the creation of the company through the combination of VARO Energy and Preem AB.
With its transformation complete, six manufacturing hubs, access to more than 120 terminals serving business customers in 33 countries, and a new leadership team in place, VAROPreem enters its next chapter focused on growth, delivery, and long-term value creation by delivering energy security and low-carbon solutions for its customers.
