NAIROBI, Kenya, Jan 18- Kenyan oil marketer KenolKobil Group has announced a 10.5 percent acquisition of a Zambian lubricants firm, as part of its quest to entrench its stronghold in the petroleum and related products business.
Mergers and Acquisitions and Regional Support Manager Patrick Kondo said on Monday that the additional shareholding in Lublend Limited which was made by its subsidiary Kenol Zambia had increased its stake to 25.5 percent.
“The new acquisition will give the Group more control of the management of the plant and will also give it more representation in the company’s board,” he said in a statement.
The stake was acquired from Chevron and followed an initial 15 percent buyout from Total Zambia in 2008. Since the acquisition, the Ndola-based firm has boosted its business by 47 percent and increased supplies to various sectors such as mining, industrial, transport and construction.
Mr Kondo said the move would strengthen the company’s market share in the lubricants business in Zambia and was in line with their diversification strategy.
This approach has seen the company nearly double its retail network in Zambia to over 25 within the last two years.
“Together with its recent entry into supplying the mining sector, Kenol Zambia is seeking to consolidate its market position as the number three oil company in Zambia,” the manager added.
There are plans to intensify Kenol Zambia’s interests in the mining sector within the Copper Belt region and help it reduce the dominance by the multinational oil companies, he disclosed.
“It is looking beyond the Zambian borders to the export markets of the Lumbumbashi area of DR Congo, Zimbabwe and Malawi,” he further pointed out.
This announcement came barely four months after the oil marketer assumed effective control of its subsidiary in Burundi making it the seventh member in the KenolKobil Group.