As part of the strategies to strengthen its distribution position in Africa, French oil company Total SA said it has acquired rival Anglo-Dutch Shell PLC’s fuel retail network in Egypt.
Total, a leader in the retail fuel market on the African continent, already owns 70 fuel stations in Egypt, representing a 4 percent market share. It will acquire 85 more from Shell to become Egypt’s fourth-largest gasoline retailer, doubling its market share, the company said.
“Through this acquisition, we reaffirm our ambition to pursue our development in Africa and in the Middle East in the retail business,” a spokesman from Total said on Wednesday.
Although the price of the transaction were not disclosed, Total Spokesman said the French company is strengthening its position as the largest gasoline retailer in Africa, Ventures Africa reports.
Retailers are now focusing on emerging markets as gasoline retail activities have decreased in Western Europe, due to lower consumption fueled by the prolonged economic crisis.
Speaking on the deal, Shell in a statement said “The sale is consistent with Shell’s strategy to concentrate its downstream footprint on a smaller number of assets and markets;” citing recent sale of some refineries in the U.K. and Germany and its refining and marketing businesses in Finland and Sweden as examples of this.
The deal is not expected to be completed for several months, Shell said.