The Competition Authority of Kenya (CAK) has approved the merger between KenolKobil and Gulf Energy giving the french conglomerate the largest market share in Kenya at 21.2pc overtaking French Total Kenya and Vivo Energy Kenyawhich had market shares of 16.4pc and 16.2pc respectively.
The approved merger comes with tough conditions among them a freeze on the sacking of employees and the retention of current pay structure and remuneration. “The Authority is of the view that the proposed transaction is likely to lead to redundancies,” CAK said in a statement.
“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.
CAK in the statement said the merger would not lead to an unfair market dominance
KenolKobil was acquired at a cost of Sh35.6 billion by Rubis in a takeover in November last year in a new ownership structure that saw the firm delisted from the Nairobi Securities Exchange.
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