Oil giant’s investment arm gets approval to buy out VGP Holdings’ Kenyan operations
Oil giant Saudi Aramco is set to enter the Kenyan market by acquiring US motor oil and lubricants group Valvoline, Business Daily reported.
The Competition Authority of Kenya (CAK) has given its approval to Aramco Overseas Company, the investment arm of Saudi Aramco, to acquire the Kenyan operations of VGP Holdings as part of the global deal worth $2.65 billion.
“The Competition Authority of Kenya excludes the proposed acquisition of control of VGP Holdings LLC by Aramco Overseas Company BV from provisions of the Act,” CAK Director-General Wang’ombe Kariuki said in a notice.
The exclusion was given, as it will not affect competition and the US group remains small in Kenya with annual sales of 14.2 million shillings.
The deal marks Saudi Aramco’s first direct involvement in the Kenyan fuel market after Kenya, through the National Oil Corporation, approached the firm for fuel supplies on credit, the newspaper said.
However, Aramco’s unit plans to seek a larger share of Kenya’s lubricants sector and tap into new markets, including fuel importation.
(Editing by Cleofe Maceda; Cleofe.maceda@lseg.com)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2022