VARO Energy to acquire Preem from Ethiopian billionaire Mohammed Al-Amoudi

Key Points

• VARO Energy has agreed to acquire Corral Petroleum Holdings AB, marking Ethiopian billionaire Mohammed Al-Amoudi’s exit from Sweden’s energy sector.
• The acquisition, which includes Preem’s refineries and infrastructure, awaits approval from Swedish and EU regulators and is expected to close in late 2025.
• VARO’s acquisition strengthens its European footprint, while Preem struggles with financial declines, including a 5.04% drop in 2024 revenue and an 83% net profit fall.

Switzerland-based VARO Energy has reached a definitive agreement to acquire Corral Petroleum Holdings AB, the parent company of Sweden’s largest fuel producer, Preem AB. This acquisition signals the end of Ethiopian billionaire Mohammed Al-Amoudi’s long-standing role in Sweden’s energy sector.

Regulatory review underway

VARO’s acquisition of Preem, including its refineries in Lysekil and Gothenburg, extensive storage infrastructure, and fuel station network, awaits approval from Swedish and EU authorities. If cleared, the deal, expected to close in late 2025, will establish Sweden as VARO’s manufacturing hub, advancing its European energy transition strategy.

Regulatory scrutiny is underway by the European Commission, Swedish Energy Agency, Transport Agency, and the Inspectorate of Strategic Products. The transaction will also be assessed under Sweden’s Foreign Direct Investment (FDI) Act and Protective Security Act due to its implications for national energy security.

VARO’s strategic expansion amid Preem’s struggle

VARO Energy founded in 2012, operating in 26 countries, is expanding its footprint with the acquisition of Sweden’s Preem. Headquartered in Zug, VARO blends traditional and sustainable energy solutions, supplying road, marine, and aviation sectors—industries under mounting pressure to decarbonize. The deal strengthens VARO’s position as a leading European energy supplier, balancing growth with the energy transition.

Preem CEO Magnus Heimburg welcomed the acquisition, stating, “VARO’s strategic direction aligns with ours. Together, we can enhance our business, ensure stability, and drive future growth.”

The acquisition comes after a challenging period for Preem, which has seen two consecutive years of financial decline. In 2024, the company’s revenue dropped 5.04 percent to SEK130.77 billion ($12.77 billion), while its operating profit fell sharply by 72.83 percent to SEK2.15 billion ($209.97 million). Net profit plunged by 83.34 percent to SEK995 million ($97.24 million), weighed down by weaker refining margins and rising financial costs.

Al-Amoudi exits as Preem sale reshapes his global portfolio

Mohammed Al-Amoudi, Ethiopia’s richest man with a net worth of $10.4 billion, finalizes his long-planned exit from one of his most valuable non-African assets. His $5.09 billion stake in Preem has been a cornerstone of his fortune, but after signaling his intent to sell in 2023, he now steps away amid mounting financial pressures.

Ranked 265th on the Bloomberg Billionaires Index, Al-Amoudi’s business empire spans energy, construction, and mining across the Middle East and Africa. His departure from Sweden’s largest fuel producer marks a pivotal shift in his investment strategy. Pending regulatory approvals, VARO’s acquisition of Preem will reshape Europe’s downstream energy landscape—closing a major chapter in Al-Amoudi’s global business legacy.