Investment holding company Reatile Group subsidiary Reatile Energy has increased its stake in natural gas provider CNG Holdings to 61.36%, which Reatile Energy says further cements its commitment to advancing the role of natural gas in South Africa’s energy mix.

This acquisition builds on Reatile Energy’s initial acquisition of a 25.01% stake in CNG in 2014.

The new ownership structure, which includes the Industrial Development Corporation retaining the remaining shares in CNG, is said to underscore Reatile Energy’s long-term strategy to enhance energy security and sustainability through the use of natural gas.

CNG has been promoting the use of compressed natural gas. The partnership is expected to expand its reach and accelerate its growth trajectory. As part of the new agreement, CNG will align with Reatile Energy’s governance structures.

The partnership aligns with Reatile Energy’s ongoing efforts to support South Africa’s transition to cleaner energy sources while ensuring reliable access to affordable power.

“This acquisition is a significant milestone for Reatile Energy and aligns with our long-term vision to increase our natural gas footprint in South Africa,” says Reatile Group chairperson Simphiwe Mehlomakulu.

“Natural gas plays a crucial role in the country’s energy mix, offering a practical solution to reduce emissions while ensuring energy security. By further integrating CNG into the Reatile family, we are not only strengthening our position in the market but also reaffirming our belief that natural gas is a key driver for a sustainable energy future for our customers and broader community,” he adds.

“We are excited to welcome Reatile Energy as the majority shareholder of CNG. This strategic partnership will significantly enhance our ability to scale our operations. As we integrate closely with Reatile Energy, we remain focused on our commitment to safety, environmental responsibility, and customer satisfaction,” says CNG group CEO Josua le Roux.