Africa
Botswana
Competition Authority
Congo
Dr.
Engen
Engen Holdings
Engen Petroleum Limited
Gabon
Ghana
Kenol Kobil
Kenya
Lesotho
Malawi
Mauritius
Mozambique
Namibia
Pty) Ltd
Reunion
Rwanda
Shell
South Africa
Swaziland
Tanzania
Vivo
Vivo Energy
Vivo Energy Holding
Zambia
Zimbabwe

CAK approves acquisition of Engen by Vivo, Latter ordered to part away with two petrol stations

Competition Authority of Kenya has approved a share transaction between Vivo Energy Holding (distributes and markets Shell-branded fuels and lubricants) and Engen Holdings that was initialized in December last year.

Vivo has further been ordered to sell/ close two fuel stations located along Parklands and Enterprise roads respectively. This should be done within 36 months from the date the merger approval is notified to the parties says CAK

The regulator says that the acquisition was unlikely to lessen or prevent competition in the participation of oil marketers in the industry since it was an open bid.

“A critical analysis of the geographical locations of the targets stations against those of the target was done in order to establish the likelihood of the proposed transaction lessening or preventing competition,” CAK said in a statement

According to the CAK the distance between the acquiring party’s stations and target’s stations is significant enough, at least 3km apart. The regulators added that the close proximity of Total and Kenol Kobil will offer vital competitive restraint.

Upon completion of this acquisition nine new countries over 300 Engen-branded service stations in Africa will be added to Vivo Energy’s network, taking its total presence to over 2,100 service stations across 24 African markets.

The new markets for Vivo Energy included in the transaction are DR Congo, Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi. Engen’s Kenya operations (where Vivo Energy already operates) are also part of this transaction.

Engen Holdings (Pty) Ltd will retain its interest in Engen Petroleum Limited (the South Africa business and refinery) and Engen’s businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho, which are not part of this transaction.

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