KenolKobil tops deals in 2019

KenolKobil’s acquisition by French multinational Rubis Energie and the quest by top banks Equity #ticker:EQTY and KCB #ticker:KCB to expand in the region topped the chart of corporate deals in 2019, with their business impact expected to be felt from next year.

Rubis completed the acquisition of KenolKobil in March at a cost of €312 million (Sh35.8 billion) before following it up with the recent acquisition of Gulf Energy Holdings to mark two local deals in a year.

The value of the Gulf deal was not disclosed but it is estimated to top the Sh4 billion mark.

This makes the Rubis’ deal the biggest by value at more than Sh40 billion.

The acquisitions have earned the French multinational the biggest market share in the Kenyan petroleum market at 21.2 percent, overtaking Total Kenya which has a share of 16.4 percent.

The allure by banks to grow big also excited the deals book in 2019, with KCB Group and Equity Group announcing significant buyouts.

Equity is spending a total of about Sh23 billion in cash and stock to buy banks in the regional market.

The lender will next year issue shares valued at Sh12 billion and equivalent to a 6.27 percent stake to London-listed Atlas Mara to take over the multinational’s banking units in Rwanda, Tanzania, Mozambique and Zambia.

It will also pay Sh10.7 billion in cash to take a controlling 66.5 percent stake in Banque Commerciale du Congo (BCDC), making its second acquisition in the Democratic Republic of Congo.

KCB acquired National Bank of Kenya (NBK) whose former shareholders were compensated by new shares in the country’s biggest bank with a current market value of more than Sh7 billion.

KCB is also in talks with the Kenya Deposit Insurance Corporation (KDIC) to buy certain assets and liabilities of the collapsed Imperial Bank valued at Sh4 billion.