Kenol Kobil-Gulf energy to merge under tough conditions

Kenol Kobil whose merger with gulf energy has been approved but with tough conditions PHOTO COURTESY

The Competition Authority of Kenya has approved the merger between KenolKobil and Gulf Energy with tough conditions.

In a statement, the Competition Authority of Kenya pointed out that the merger between KenolKobil and Gulf Energy will not lead to unfair market dominance.

 CAK directed that the merged entity should not retrench any of the 102 employees.

The authority also conditioned that the merged entity ensures that all deals and terms signed between Gulf Energy and SMEs be maintained for at least 24 months.

The acquisition of Gulf Energy Holdings gives the French conglomerate the largest market share in Kenya of 21.2 percent thus overtaking another French oil giant Total Kenya and Vivo Energy Keny.

 Total Kenya had market shares of 16.4 percent while Vivo energy had 16.2 percent.

KenolKobil, which is owned by French multinational Rubis Energie announced the takeover in November last year.