Tough Conditions To Be Met CAK Approves KenolKobil, Gulf Energy Merger
The Competition Authority of Kenya (CAK) has approved the merger between Rubis Energie (KenolKobil) and Gulf Energy, but the new entity will not be allowed to fire the current staffers.
Rubis, the parent company for KenolKobil, will be required to retain the current pay structure and remuneration.
The merger gives Rubis the largest market share in Kenya at 21.2 percent overtaking Total Kenya and Vivo Energy Kenya which have market shares of 16.4 percent and 16.2 percent respectively.
Read: Total Director of Strategy Dr Macharia Irungu Named KPC Boss
“The Authority is of the view that the proposed transaction is likely to lead to redundancies. The proposed merger is likely to affect the arrangements between the SMEs and Gulf and occasions the need to ensure that the SMEs are protected post-transaction,” CAK said.
Gulf is reported to have sold at least 470,000 cubic metres of petroleum products in 2018. 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.
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