MOSCOW (MRC) -- Reliance Industries has completed the sale of its Mauritius-incorporated arm Gulf Africa Petroleum Corporation (GAPCO) which trades and markets fuel in the African markets to French energy major Total Marketing & Services, marking its exit from the international fuel retail business, reported The Economic Times.
In May 2016, the billionaire Mukesh Ambani-led Reliance Industries' subsidiary, Reliance Exploration & Production DMCC, had signed an agreement to sell its entire 76% stake in GAPCO to TOTAL. The company has now concluded the transaction after obtaining requisite regulatory approvals and consents, RILBSE 3.93 % said in a statement on Wednesday.
"Since the acquisition of 76% equity interest in GAPCO by REPDMCC in 2007, GAPCO has significantly grown and is one of leading petroleum marketing company in East Africa owning retail outlets as well as onshore and offshore terminals," RIL said in the statement.
GAPCO is a holding company with operating subsidiaries in Tanzania, Kenya and Uganda which are primarily engaged in petroleum product import, and trading, storage, distribution, marketing, supply and transportation of oil products in East Africa. The transaction also involved minority shareholder who sold their entire respective holdings in GAPCO for cash, the company said.
The company did not disclose the deal consideration. The acquisition would help Total, the fourth largest distributor of lubricants, to consolidate its presence in Africa where it is a leading distributor of petroleum products and increase its market share to over 20% from around 175 in 2015.
Reliance Industries, like other private sector energy company Essar Oil, has started expanding its fuel retail business after the government deregulated diesel prices in in October 2014.
As MRC informed previously, RIL has delayed the start-up of its new monoethylene glycol (MEG) plant until Q2 2017. The company scheduled to commence operations at the plant in Q2 2017. As per the earlier plans, the plant was to be started in December 2016. Located at Jamnagar, Gujarat in India, the plant has a production capacity of 750,000 mt/year.
Reliance Industries is one of the world's largest producers of polymers. The company is engaged in a wide range of activities, ranging from oil and gas production to production of polyester and polymer goods, including the production of polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), and textiles.