KenolKobil has acquired the operations of Delta Petroleum in Uganda and Rwanda, further pushing up its market share in the region even as it awaits conclusion of a deal by French firm Rubis Energie to buy out all its current shareholders.
The oil marketing company yesterday said the deal would see it get an additional 33 petrol stations, increasing its retail outlets in the region to 433.
The transaction has been undertaken through its subsidiaries, Kobil Uganda Limited and Kobil Petroleum Rwanda Limited.
“Delta Uganda is a leading oil marketing company in Uganda and has agreed to sell 23 retail outlets spread across Uganda. Delta Rwanda is also in the oil marketing business and has a network comprising of 10 retail outlets spread across Rwanda, which are the subject of the sale,” said KenolKobil in a statement yesterday.
- 1 Bobi Wine has the opposition on his side, can he win poll?
- 2 CAF disqualifies new Gor Mahia coach Oliveira from taking part in Champions League
- 3 The man who has cheated death three times in L.Victoria
- 4 16 killed as riots rock Uganda over Bobi Wine's arrest
The deal is subject to legal and regulatory approvals but the firm expects it to conclude by end of March 2019.
“The acquisitions are in line with the board’s growth strategy through organic and inorganic retail network expansion,” said the statement.
KenolKobil is one of the largest players in Kenya’s retail petroleum market and operates 200 petrol stations. The acquisition will increase its footprint to 56 stations in Uganda and 61 in Rwanda.
Investors and the general public were advised to exercise caution when dealing in the securities of the company.
The acquisition comes two weeks after it emerged that the family of the late Nicholas Biwott is set to exit KenolKobil, after Rubis Energie made an offer to acquire 100 per cent shareholding in a deal worth Sh35.6 billion set to be completed by March 2019.