Business Daily (Nairobi)

Listed oil firm KenolKobil has set up a company in Mozambique with an eye on acquisitions as it seeks a larger share of the Southern African oil market.

The oil marketer has formed Kobil Mocambique to either start operations from scratch or acquire rivals to serve Zambia, Malawi and Zimbabwe.

"The entry into Mozambique will enhance our ability to extend our reach in the hinterland market of East, Central and Southern Africa," Patrick Kondo, the firm's mergers and acquisition manager said in a statement.

"KenolKobil will be present in all countries with port facilities along the East Coast of Africa, except South Africa. This is a strategic move for the KenolKobil Group's fuel supplies in Africa."

The firm's bid for a piece of the southern Africa market collapsed early this year after the Zimbabwean Government blocked its plan to acquire assets of Shell and BP operation in that country.

The oil marketer alongside Engen agreed to buy Shell and BP assets in Zimbabwe last year, but Harare wanted local investors to control a substantial shareholding.

"KenolKobil is still pursuing acquisition in Zimbabwe following the unsuccessful joint bid with Engen for the assets of BP/Shell in that market," said Mr Kondo.

The opposition to the Zimbabwe deal is set to slow down KenolKobil's quest to for a larger share of the Southern Africa market after entry into Zambia through an acquisition in a strategy dubbed "Move South Strategy."

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