Not buying just yet
Vivo issued a trading update with two important pieces of information. It concluded the Engen deal, but without the Democratic Republic of Congo part of the business (this was the sticking point for the deal). This gives Vivo an additional 225 branded service stations in eight new African countries (and Kenya where it already operates). But no news on the Morocco issues regarding regulation. Vivo did state that it’s seeing margin pressure there, but the market is waiting for the Moroccan king to announce on the issue. Until the king does, the company has serious uncertainty in its largest market. So, even with the price down at around 2 250c/share, I am waiting rather than buying.