Freshfields Bruckhaus Deringer (‘Freshfields’) is advising Reatile Group Proprietary Limited (“Reatile Group”) and the IDEAS Fund, managed by African Infrastructure Investment Managers Proprietary Limited (collectively the “Reatile Consortium”) on the acquisition of a 30 per cent interest in the Republic of Mozambique Pipeline Investments Company (ROMPCO) from Sasol South Africa (SSA).

Reatile Group’s investment in ROMPCO will help broaden participation in the South African energy sector and highlights Reatile Group’s leading role in it. The investment demonstrates the economic potential of increased gas supply to the region and Reatile Group’s support for ROMPCO’s long-term expansion potential.

The proposed transaction paves the way for further capital raising and investment in the ROMPCO pipeline to facilitate the crucial expansion of imports. This will serve to unlock the opportunities for industrialisation and the furtherment of cleaner power generation.

The investment in ROMPCO also marks a significant milestone for Black Economic Empowerment, with the Reatile-AIIM Consortium having black ownership of more than 60 per cent. The deal will also see Reatile Group grow its already substantial presence in the energy and petrochemical sectors, in line with the ambitions of the Department of Trade and Industry’s Black Industrialist Policy.

Freshfields’ work with Reatile Group further highlights the strength of its Africa practice. Freshfields is number one for M&A in cross-border gas pipeline systems and has advised on the most significant cross-border gas pipelines M&A deals of any law firm over the last 10 years, including Africa’s most recent gas pipeline transaction, the East Mediterranean Gas pipeline traversing Egypt and Israel.

This M&A strength draws on Freshfields stellar project development and financing expertise built over many years of advising on many of the standout oil and gas pipeline developments globally, including the West Africa Gas Pipeline, Africa’s foremost cross-border pipeline.

The Freshfields team was led by Gabriel Mpubani, partner and co-head of Freshfields’ Africa Group, and Shawn der Kinderen, partner and co-head of Freshfields’ global markets offering.