Commodity firm Montroft targets East Africa region after acquiring Delta petrol stations

KENYA Global commodity company Montfort has acquired Kenya’s indigenous oil dealer Galana Oil, which trades under the brand name Delta.

Representatives of Montfort told the Business Daily that the firm has bought out Galana in its entirety, although they declined to disclose the financial details of the transaction.

They added that the deal has received the nod from Kenya’s competition watchdog and other relevant regulators.

“Yes, all the necessary approvals for the acquisition of Galana Kenya together with subsidiary Kencor Petroleum were obtained prior to completion of the transaction,” said the firm.

Montfort’s headquarters are in Geneva, Switzerland while its trading operation is in Dubai, United Arab Emirates.

“Montfort Group is a newly formed group of companies with a diverse portfolio of commodity-related businesses, run by an efficient management with decades of experience in commodity trade,” said Montfort.

“The acquisition of Kencor, an active participant in Kenyan Open Tender System (OTS) imports, is the first step to achieving Montfort’s goal of expanding its operations into the region and neighboring countries.”

The firm added that Galana staff will not be adversely affected by the buyout, with the new owner’s immediate focus now on regional expansion.

“We are maintaining all the existing staff of the business and look forward to integrating them into Montfort Group,” said the firm.

“All the necessary approvals for the acquisition of Galana Kenya together with subsidiary Kencor Petroleum were obtained prior to completion of the transaction"

Galana, which was co-founded in 1993 by the late billionaire James Gachui, is among indigenous firms that have been competing with large multinational marketers for a slice of the lucrative petroleum market.

The firm has operations in Nairobi, Mombasa, Nakuru, Eldoret and Kisumu.

In August 2021, the global commodity company Montfort said it will begin supplying delivered marine fuels in Fujairah and Khor Fakkan, UAE, as of next month.

“We will sell high-sulfur (HSFO) and very low-sulphur fuel oil (VLSFO), as well as low sulphur marine gasoil (LSMGO) from 1 September,” its head of bunkering Mikkel Jacobsen, told Argus.

The firm will operate two barges, with a total supply capacity of 50,000t.

Montfort will become the fourth supplier to offer HSFO in Fujairah, joining Al Arabia Bunkering, Akron, and Mediterranean Eastern.

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