VARO completes acquisition to create VAROPreem

VARO Energy has completed its acquisition of Sweden’s Preem AB, formally creating VAROPreem and marking the successful delivery of its ONE VARO transformation strategy launched in 2022.
Following regulatory approval, the combination brings together two complementary energy businesses to form one of Europe’s most significant energy companies, with scale across conventional and renewable fuels and a strong industrial and trading platform.
VAROPreem becomes the second-largest renewable fuels producer in Europe, one of the top six globally, and Europe’s third-largest independent refiner.
The company serves business customers across 33 countries through six strategically located manufacturing hubs and access to more than 120 terminals, meeting around 10% of European mobility demand in the road and marine sectors.
The group operates six major manufacturing sites: Lysekil and Gothenburg in Sweden, Neustadt and Vohburg in Germany, Cressier in Switzerland and Coevorden in the Netherlands.
Together, they provide a processing capacity of 530,000 barrels per day of conventional fuels, 1.3 million tonnes per annum of renewable fuels and 450 GWh of biogas.
VAROPreem also owns elexon, a leading European developer of commercial vehicle charging infrastructure.
VARO said the transaction confirms the success of its ONE VARO strategy, which aimed to triple EBITDA and generate 50% of earnings from sustainable energies by 2026.
On a pro forma basis, around half of VAROPreem’s 2025 earnings are now expected to come from sustainable energy activities, with EBITDA projected to be three times higher than in 2021.
Recent investments highlight the group’s transition focus, including the Synsat facility at Lysekil, enabling co-processing of renewable feedstocks, and the Coevorden site producing biomethane and bio-LNG.
The company said it will continue operating Preem’s assets with a strong emphasis on security of supply, resilience and continuity of service.
VAROPreem will follow a “twin-engine” strategy, supplying both conventional fuels and sustainable energies to mobility and industrial customers.
The approach is designed to balance the ongoing demand for traditional fuels with rapid growth in low-carbon alternatives.
Dev Sanyal, Group Chief Executive Officer of VAROPreem, said the creation of the new company marked a defining moment for both businesses.
“Together, we have created one of Europe’s most significant energy companies, combining industrial scale, critical infrastructure, financial strength and deep operational expertise. With EBITDA now three times higher than when we began our transformation, we have achieved scale and are well positioned to deliver reliable, lower-carbon energy across Europe,” he said.
A new executive board has been formed, bringing together senior leaders from VARO and Preem, covering manufacturing, trading, sustainable energies, finance, strategy, technology and integration.
The acquisition was fully financed through a debt package that attracted 15 new lenders, expanding the lending syndicate to 30 institutions.
Banks from Europe, the United States, Japan, Southeast Asia, the Middle East and South Africa participated, underlining strong market confidence in VAROPreem’s strategy.
With its transformation strategy complete and a new leadership structure in place, VAROPreem said it is entering its next phase focused on growth, delivery and long-term value creation, while supporting both energy security and Europe’s transition to a lower-carbon energy system.