(Ecofin Agency) - Total on Tuesday announced that it has signed an agreement to acquire Gulf Africa Petroleum Corporation's (GAPCO) assets in Kenya, Uganda and Tanzania.

These assets include two logistical terminals in Mombasa, Kenya and Dar es Salaam in Tanzania, as well as a retail network of around one hundred service stations (67 in Tanzania, 9 in Kenya and 32 in Uganda). The transaction is subject to the approval of the authorities in the three countries.

The acquisitions, which are corresponding to Total’s current operations in the three countries, will reinforce the company’s logistics in the region and significantly fast track the growth of its service station network, especially 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. These assets, which complement our activities in East Africa, will help us fully leverage synergies of size and build the most competitive integrated regional supply, logistics and marketing base,” Momar Nguer, President of Total Marketing & Services said.

The deal which is worth a multi-billion shillings signifies the exit of GAPCO owned Indian tycoon Mukesh Ambani from the local fuel market.

A leading retailer of petroleum products in Africa, Total aims to increase its market share from 17% in 2015 to over 20%.

Anita Fatunji