Kampala — KenolKobil has signed a deal worth more than $10m to acquire 33 fuel retail outlets from Delta Petroleum in Uganda and Rwanda.
The deal, which was signed yesterday in Nairobi, Kenya seeks to increase the Kenyan-based company's footprint in Uganda and Rwanda.
The deal will see KenolKobil take over 23 fuel stations from Delta Petroleum in Uganda and 10 from Delta Rwanda.
Speaking in an interview, Mr Olivier Gatera, the Kobil Uganda country manager, told Daily Monitor that the acquisition, which will help the company to expand, will contribute to the group's top and bottom lines.
"The acquisitions are in line with the board's growth strategy through organic and inorganic retail network expansion," he said, adding that they were committed to expand into Uganda and Rwanda's oil marketing space.
The deal will increase KenolKobil's network to 433 stations spread across East Africa.
The company has its largest reach in Kenya with about 200 stations. Kobil Uganda's retail outlets will increase to 56 stations while Kobil Rwanda will have 61 stations under its control.
"The [KenolKobil] board has been working on the transaction since February 2018 and it is expected to be concluded by end of March 2019 subjected to applicable legal and regulatory approvals," a statement issued after signing the deal reads in part.