Shell sells Egypt gas retail network to France's Total
Total SA announced that it has bought rival Anglo-Dutch Shell PLC’s fuel retail network in Egypt for an undisclosed sum.
A leader in the retail fuel market on the African continent, Total already possesses 70 fuel stations in Egypt, making up a 4% market share. According to the firm, it will buy 85 additional stations from Shell to become Egypt’s fourth-largest gasoline retailer by more than doubling its market share.
“Through this acquisition, we reaffirm our ambition to pursue our development in Africa and in the Middle East in the retail business.”
Retailers are now concentrating on emerging markets as gasoline retail activities have declined in Western Europe because of lower consumption fueled by the prolonged economic crisis and more fuel-efficient vehicles hitting the markets.
Shell said that the deal is not likely to be completed for several months.
(May 18, 2013)