French company Rubis Energies is poised to take over Gulf Energy, months after the turbulent acquisition of KenolKobil.
According to media reports, Rubis is planning to spend at least Ksh5 billion in the acquisition that will make it the largest oil marketer in Kenya.
Rubis spent close to Ksh36 billion to acquire 97.6 percent stake at KenolKobil in a deal that was filled with turbulence, with reports of insider trading.
Currently, Gulf Energy has a market share of 5.8 percent while KenolKobil, as of June, had a market share of 15.4 percent. This means that the total market share for Rubis, upon Gulf acquisition, will shift to 21.2 percent.
Total is the current market leader is Total at 16.4 percent followed by Vivo Energy (Shell) at 16.2 percent, and could be dwarfed by the takeover.
“After having succeeded in its takeover offer on KenolKobil in March 2019, Rubis, already active on the fast-growing Kenyan market, would with this acquisition, become the leader with a 20 percent market share,” said Rubis in a statement.
Gulf is reported to have sold at least 470,000 cubic metres of petroleum products last year. Its sales amounted to at least Ksh36.7 billion in 2018. It has 46 fuel stations across the country that deal with all oil products including LPG, lubricants, petrol, diesel and paraffin among others.
It also owns two fuel depots and a LPG storage and filling plant and lubricants unit.
The agreement for acquisition has already been signed and is awaiting regulatory approval.