Ethiopian Regulator Reportedly Blocks Ola Energy Acquisition of TotalE
According to several Ethiopian news sources, the Ethiopian Trade Competition and Consumer Protection Authority has reportedly blocked Ola Energy’s proposed acquisition of TotalEnergies’ assets in Ethiopia.
The reported decision is said to be linked to concerns that the merger could significantly increase Ola Energy’s market share to nearly half of the fuel distribution market, potentially creating a dominant position in Ethiopia’s petroleum distribution sector and reducing market competition.
Ola Energy Holdings is a subsidiary of the Libya Africa Investment Portfolio (LAIP). LAIP is a subsidiary of Libya’s sovereign wealth institution, the Libya Investment Authority (LIA).
It will be recalled that on 30 June Ola Energy Holdings had announced that it had acquired Total Energies’ assets in Ethiopia. The value of the deal was not announced.
The agreement includes the acquisition of approximately 120 fuel distribution stations, a fuel storage depot with a capacity of 13,000 cubic meters and associated operational and commercial activities.
If approved, the acquisition would make OLA Energy the largest foreign company in the Ethiopian fuel distribution market.
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