Tanzania's energy firm Lake Oil has been cleared and is set to acquire the petroleum retail business of Hashi Energy, adding to Lake Oil's existing gas distribution business in Kenya
All Africa have reported that: "It is notified for general information that the Competition Authority of Kenya has authorised the proposed acquisition of the retail petroleum business of Hashi Energy Limited by Lake Oil Limited," the regulator said in a notice.
The value of the transaction has not disclosed. Lake Group has operations in the region including Zambia, Rwanda and Burundi and deals in petroleum distribution as well as cement manufacturing. Lake Group, containing the subsidiary Lake Oil, also run an inland container depot in Tanzania.
The transaction will see Lake Oil inherit Hashi's market share in local volume sales which stood at 3.7 per cent in the nine months ended September 2016.
This made Hashi the seventh-largest oil marketer in the country. The company is ranked higher in regional sales at fifth position ahead of OiLibya, Nock and Petro.
The sale of fuel stations will leave Hashi with bulk petroleum distribution business in the local market including the sale of fuel to airlines. Hashi also has a presence in logistics, solar products distribution, and mining. The deal marks increased expansion by Lake Oil which was founded by Ally Edha Awadh in 2006.
Hashi's exit from the petroleum retail business comes after the company signed a KSH14bn deal with Dubai's SS Lootah to venture into the supply of food to military personnel and non-governmental organisations in DRC.