Maputo, 20 Sep (AIM) – The Mozambican Competition Regulatory Authority (ARC) has allowed the publicly-owned fuel company, Petromoc, to take almost 100 per cent control of the aviation fuel business in the country – but on condition that it sell off half its shares in Maputo International Airport Fuelling Services (MIAFS) within a year.
The British Petroleum (BP) subsidiary in Mozambique submitted to the ARC on 24 July its intention to sell all the shares it held in MIAFS to Petromoc.
A Monday statement from the ARC raised no objection to this purchase, which means that Petromoc will own all the shares of MIAFS.
Before this sale, MIAFS was a joint venture between Petromoc and BP Moçambique, each owning 50 per cent of MIAFS, which operates depots for the supply of aviation fuels, the operation of the hydrant line, the design and construction of fuel storage depots and aircraft refuelling services at Maputo International Airport.
But this deal gives Petromoc a dominant position on the aviation fuel market, and so the ARC has ordered Petromoc to sell off at least half its shares in MIAFS within a year.
This, the ARC said, is intended to make the aviation fuel market less concentrated, in the hope that this will lead to lower prices, greater choice and “more effective competition”.
“By carrying out this operation, the structure of MIAFS’ share capital will be altered, with Petromoc becoming the sole shareholder, which puts it in a dominant position and could create obstacles to free competition, insofar as a significant part of Maputo’s aviation fuel storage infrastructures will be under the control of a single operator”, reads the ARC document.
(AIM)
Ad/pf (290)
