Varo raises sights in European downstream

Varo Energy, Europe's newest downstream specialist, is merging with trading and marketing company Argos to target the creation of a 'major downstream business' in northwestern Europe

The combined company, retaining the Varo name, will own refining capacity in Switzerland and Germany, nearly 50 storage installations in five countries, and marketing businesses across Europe. The new Varo will be owned in three equal shares by the two participants' present owners - private-equity investor Carlyle and trading firm Vitol, which at present own Varo, and, jointly, investment companies Reggeborgh and Atlas Invest, which own Argos. Varo says the enlarged company will handle 100 million barrels of oil a year and will build on the trading strengths of both participants. Rotterdam-based Argos trades, stores and distributes refined products and biofuels, and operates 21 tank terminal