The acquisition agreement between OLA Energy and Total Energies Marketing Ethiopia has faced a regulatory suspension over concerns that it could create a high risk of monopoly in Ethiopia's retail fuel market.
Sources close to the matter revealed that the Ethiopian Trade Competition and Consumer Protection Authority have temporarily halted the approval process for the mega-deal, which was concluded between the two international energy firms in Paris.
The suspension was imposed due to concerns that the planned merger could allow a single company to dominate the market by capturing nearly half of the country's retail fuel share.
Regulatory bodies noted that if the company were to subsequently scale back its operations or withdraw entirely from the market, it could trigger a severe structural crisis in the nation's fuel supply.
Under the agreement signed in Paris at the end of June, the pan-African fuel retailer OLA Energy backed by Libyan government investment institutions agreed to fully acquire the assets of the French company Total Energies in Ethiopia.
The transaction encompasses over 120 fuel stations located in major cities, a large fuel storage terminal in Dukem, aviation fuel operations at Bole International Airport, lubricant businesses, digital payment systems, and logistics infrastructure.
This ownership transfer brings an end to Total Energies' commercial presence and seven-decade history in Ethiopia. If fully approved, OLA Energy will surpass the National Oil Company (NOC), which currently holds the largest market share, positioning itself as a dominant market player.
Bekelech Kuma, communication director at the Ethiopian Petroleum and Energy Authority, stated that the business transfer and merger process cannot be completed in a short period, explaining that strict legal frameworks are in place to evaluate whether the merger creates monopoly concerns or impacts market competition.
The acquisition will undergo rigorous investigation pursuant to Ethiopia's Trade Competition and Consumer Protection Proclamation No. 813/2013 and Merger Guideline No. 1/2016.
As the fuel market remains under severe pressure from foreign currency shortages and high import costs, the final decision on this transaction is awaited with intense anticipation.
