Rubis Energy, the French Oil distributing Company, has signed a share purchase agreement for the acquisition of Gulf Energy Holdings Limited (GEHL). The announcement comes a few months after Rubis successfully acquired Kenol Kobil limited at a cost of KSh36 billion.
Gulf Holdings
Gulf Energy Holdings is an energy retailer active across various segments of the Kenyan market, including aviation fuels, liquefied petroleum gas and lubricants.
GEHL appeals to Rubis due to the presence in main market segments such as retail (46 gas stations), aviation fuels, commercial(notably supplying power plants and large industrial consumers), LPG and lubricants.
In addition, to support its distribution activities, the company owns two fuel depots (Mombasa and Nairobi) along with LPG storage and filling plant and a lubricants unit.
Rubis is involved in the distribution of petroleum products, liquid petroleum gas and bitumen across Europe, the Caribbean, and Africa.
According to 2017 data from the Petroleum Institute of East Africa, the major players in the product market for the supply of lubricants in Kenya are; Total Kenya (38.6%), VIVO Energy (34.2%), Oilibya (10.1%) and KenolKobil (6.6%)
After having succeeded in its takeover offer on Kenol Kobil in March 2019, Rubis, is already active on the fast-growing Kenyan market. By acquiring Gulf Energy holding, Rubis will become one of the major oil distributors in Kenya, with a 20% market share.
This acquisition is subject to the prior approval of the Kenyan regulatory and competition authorities.