French multinational oil & gas company, Total, will further expand its downstream petrol distribution in Tanzania, according to a press release published on 31st May 2016.
Total will acquire Gulf Africa Petroleum Corporation’s (GAPCO) assets in Tanzania, subject to the approval of the local authorities.
Total agreed to buy Reliance Industry Limited’s 76% share in GAPCO in May 2016. The sale is expected to be completed in September 2016.
The principal assets being acquired include a logistics terminal in Dar es Salaam and 67 service stations in Tanzania.
“This acquisition is in line with Total’s growth strategy for the distribution of petroleum products and services in Africa, which aims at expanding in fast-growing regions while maintaining high profitability,” explained Momar Nguer, President, Total Marketing & Services.
Total has a network of more than 4,000 service stations in Africa. The company aims to grow its market share from 17% in 2015 to more than 20%.
Total Tanzania has a retail network of 32 service stations and lubricant, aviation fuel and general retail businesses. It has an estimated market share of 10%.
The acquisition of GAPCO’s assets is part of Total’s intention to expand in Uganda and Kenya as well.
The company will also acquire a logistics terminal in Mombasa, Kenya, 9 service stations in Kenya and 32 in Uganda.
GAPCO is primarily involved in petroleum product imports, retail and wholesale marketing, trading, storage, distribution, supply and transport of oil products to the countries in East and Central Africa.
GAPCO has subsidiaries in Tanzania, including Zanzibar, Kenya, and Uganda.