The Competition Authority of Kenya (CAK) approved the Kenol Kobil Gulf Energy Merger on the condition that no employee of Gulf Energy Holdings will be fired.
The CAK has barred Kenol Kobil from letting go of any employees of Gulf Energy while at the same time requiring that the merged entity retain basic remuneration for all employees as well as employee benefits.
“Within the next two years, no employee of Gulf Energy will be declared redundant,” said CAK in a statement concerning the merger
Kenol Kobil which is a wholly-owned subsidiary of the Rubis Energy SAS following the 2019 acquisition announced its intent to buy out the entire issued capital of Gulf Energy on November 4, 2019.
Data by the Petroleum Institute of East Africa shows that Gulf Energy will add its market share of 5.8 to KenolKobil’s 15.4 percent, bringing in a total of 21.2 percent.
The merger will disrupt the petroleum market arrangement in Kenya by displacing Total (16.4 percent) and Vivo Energy (16.2 percent) from the first and second positions respectively.
The rest of the market is shared between Ola (6.9 percent), Nock (4.4 percent) Galana (2.7 percent), Petro Oil (2.4 percent), and Be Energy (1.85 percent).
The CAK has also demanded that the merged entity to ensure that contracts between Gulf Energy and retail station dealers, as well as SMEs, are maintained.
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