The Competition Commission has recommended that the Competition Tribunal approves two proposed acquisitions involving Royale Energy and its subsidiary Viva Oil, with conditions aimed at protecting employees against merger-related retrenchments.
In a statement issued on Thursday, 22 October 2026, Competition Commission spokesperson Siyabulela Makunga said the Commission had considered the transactions at its ordinary meeting on Tuesday, 20 October.
Under the proposed transactions, Royale Energy intends to acquire Watts Energy, while Viva Oil intends to acquire Watts Energy Transport.
Viva Oil is wholly owned by Royale Energy, which operates in the wholesale, retail, marketing, storage and distribution of petroleum products in South Africa.
Its activities include the supply of petrol, diesel, illuminating paraffin, liquefied petroleum gas and lubricants, as well as transport and logistics services.
Watts Energy and Watts Energy Transport operate in the bulk supply of petroleum products, particularly diesel, petrol and illuminating paraffin.
Their customers include businesses in the agriculture, mining, transport and manufacturing sectors.
The Commission found that the proposed transactions were unlikely to substantially lessen or prevent competition in any market.
However, to address possible employment concerns arising from overlapping business activities, the merger parties agreed to a moratorium on merger-specific retrenchments for the duration of the agreed moratorium period.
The Commission has recommended that the Competition Tribunal approve the transactions subject to these conditions.
The recommendation is not a final Tribunal approval.
The acquisitions form part of a series of merger decisions considered by the Commission during its October meeting.
