Kenya Allowed Shell Takeover BP Assets

The Treasury of Kenya opened yesterday the way for the blocked merger of two subsidiaries of oil transnationals.

Kenya's finance minister Amos Kimunya allowed the Shell takeover of BP's assets, ending months of anxiety by the joint marketers.

It has taken nearly two years since the takeover details emerged for a tribunal to rule on the matter.

However, the new entity would have to off-load 10 per cent of their fuel stations in the market. This translates to 13 stations, of which sources indicated four would be in Nairobi. This is supposed to take place within 180 days. "Thirty per cent of the sites to be disposed of by Kenya Shell shall be located in the greater Nairobi area," said a Kenya Gazette notice signed by the minister.

Shell is taking over half the shares held by the firm in three companies: Kenya Shell, BP Kenya, and Shell and BP Malindi.