Kenya: Total Acquistion of Caltex Network Benefits National Oil
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Wednesday, 08 July 2009 |
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 Total Kenya will relinguish nine of its service stations to comply with the Caltex service station network acquisition.
Photo (Daily Nation Kenya)
This will result in National Oil Company of Kenya to receive 21 service stations from both networks, as a result of the deal between Total & Chevron. This followed the completion of the acquisition process involving the government of Kenya which set up the conditions for sale.
Total Outre Mer SA, through a subsidiary, Total Marketing Kenya, bought out the outfit formerly operating under the brand name Caltex in Kenya and Uganda. The new entity will be merged with the operations of Total Kenya through a shareholders approval by the end of the year.
The deal, whose monetary value has not been confirmed to date, will also see Total Marketing dispose of Chevron’s LPG (cooking gas) filling centre in Nairobi. The firm is also expected to conclude a Throughput and Filling Agreement at one of the Mombasa LPG filling centres operated by Total Kenya Limited or Chevron Kenya Limited with another person having no such other facilities in Mombasa.
The commitment that has to be executed in the next 14 months will also see the oil marketer dispose of Total Kenya Limited or Chevron’s Kenya Limited current aviation operations and bulk storage facilities. The two facilities are located at Jomo Kenyatta International Airport, Nairobi and Moi International Airport, Mombasa respectively.
In a Gazette notice in May, Finance minister Uhuru Kenyatta, exercised his powers under the restrictive Trade Practices, Monopolies and Price Control Act.
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