KenolKobil and Engen in Zimbabwe Joint Venture..

Engen, South Africa’s leading refined petroleum products company, and KenolKobil , the largest indigenous African petroleum marketing company in the East and Central African Region, have signed a sale and purchase agreement to jointly acquire all the shares in Shell Zimbabwe and BP Zimbabwe.

The acquired entities were previously operated by BP on behalf of the joint venture which marketed under both the BP and Shell brands in Zimbabwe.

With this transaction, Engen and KenolKobil have acquired the best developed assets in the oil industry in Zimbabwe, consisting of more than 75 service stations spread across the country, as well as several depots, located in Harare, Bulawayo,Mutare, Gweru and other major towns in Zimbabwe.

This seems a good move especially if the coalition govt. in Zimbabwe can hold it together and emerge as a better  run country which would only mean an upside for KenolKobil and with this move now KenolKobil has a footprint in East, Central and Southern Africa Regions.

The acquisition is in line with KenolKobil’s expansionary plans, as evidenced by the recent entry into Burundi where they acquired from Engen in Burundi; Oil Burundi Limited.

KenolKobil was suspended from the NSE today as this transaction takes place.

Post based on KenolKobil press release to be found here from KenolKobil and here the softcopy for download.