Rubis eyes oil market dominance in buying Gulf Energy

Without disclosing the value of the deal concluded in Paris, the conglomerate said it had acquired all the issued shares of GEHL, coming just months after concluding the takeover of KenolKobil. FILE PHOTO | NMG 

By JAMES KARIUKI
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Summary

• French firm Rubis Energie has cemented its market share in the region after buying off Gulf Energy Holdings Limited (GEHL), the special purpose vehicle holding the oil marketing assets and businesses of Gulf Energy Limited.
• Without disclosing the value of the deal concluded in Paris, the conglomerate said it had acquired all the issued shares of GEHL, coming just months after concluding the takeover of KenolKobil.
• The deal brings Rubis’ combined market share to 21.2 percent, making it the local market leader.

French Oil major Rubis Energie has announced that it signed a share purchase agreement (SPA) that will see the multinational acquire Gulf Energy Holdings Limited in Kenya.

The move comes just months after its successful takeover of delisted marketer KenolKobil. The acquisitions subsequently make Rubis Kenya’s leading oil marketer with a combined market share of 21.2 percent, overtaking market leader Total that had a market share of 16.4 percent according to the latest data for the quarter ended June 2019.

KenolKobil had a market share of 15.4 percent while Gulf had a market share of 5.8 percent in the same period.

Without disclosing the value of the deal concluded in Paris, Rubis Energie said it had acquired all the issued shares of Gulf Energy Holdings Limited (GEHL), the special purpose vehicle holding the oil marketing assets and businesses of Gulf Energy Limited.

“After having succeeded in its takeover offer on KenolKobil in March 2019, Rubis, already active on the fastgrowing Kenyan market, would with this acquisition, become leader with a 20 percent market share. Higher volumes in this market would allow, in time, to generate significant economies of scale,” Rubis said in a statement.

Gulf Energy runs 46 fuel outlets as well as fuel depots in in Mombasa and Nairobi.

Rubis which already operates in 12 African countries in the mid and downstream oil market will now take over GEHL’s gas stations, commercial contracts for supplying power plants and large industrial consumers, aviation fuels, LPG and lubricants.

Early this year, Rubis entered the Kenyan market when it bought off 1.182 billion ordinary shares held by KenolKobil former owners worth Sh26.35 billion bringing its stake to 97.6 percent and resulted in delisting of the firm from the Nairobi Securities Exchange.

Founded in 1959, KenolKobil’s operations span across seven countries across Eastern, Central and Southern Africa where it deals in supply, storage, distribution and retail of a wide range of petroleum products.