Total strengthens partnership with Zahid Group
Saudi group will take a 30% share in the company.
Total has announced that Zahid Group, headquartered in Jeddah, Saudi Arabia, has become a 30% shareholder of Marketing and Services affiliate, Total Maroc. Total Maroc is also currently preparing an initial public offering (IPO) on the Casablanca Stock Exchange, which would allow individual Moroccan shareholders and institutional investors to acquire 15% of the shares of Total Maroc. The IPO is expected to be launched in the near future. Total will continue to retain a controlling interest in Total Maroc and operate it.
"Having outside partners acquire interests in our affiliates is a key component of Total's strategy in the petroleum products and services retail sector in Africa and the Middle East, and a critical factor in long-term success," explained Momar Nguer, Senior Vice President, Africa/Middle East at Total Marketing & Services.
"Not only does it allow us to further strengthen the local roots of Total's different affiliates by giving local and regional investors a stake in their performance, it also opens up new business opportunities through partners that trust Total as an operator," he added.
”The journey towards this opportunity actually started 10 years ago, when talks to launch our now operational Saudi joint venture (SATLUB) took place; a collaboration that I am gratified to say is exemplary and whose success is built on the principles of integrity, trust, cooperation and the pursuit of excellence in all that we strive to achieve,” commented Waleed Y Zahid, President and CEO of Zahid Group.
“I have every confidence that our newly expanded partnership here in Morocco will be founded on the same principles that have governed our relationship to date, and will result in another successful collaboration for us to further build on.”
Total and Zahid Group formed Saudi Total Lubricants Company Ltd. (SATLUB), in Saudi Arabia in 2006; a joint venture specializing in the manufacturing and marketing of automotive, industrial and marine lubricants, as well as specialty products marketed within the Kingdom of Saudi Arabia. Through this investment with Total Maroc,
Zahid Group is reinforcing its strategic relationship with Total, while contributing to a promising Saudi-Moroccan economic partnership. Waleed Y Zahid further commented, “I would like to add that the attraction to investing in Morocco is a result of the great stability, promising growth and diversification in the national economy and the availability of skilled nationals for whom we aim to create jobs and greater prosperity. It gives us great pleasure to contribute to the special relationship between our two countries, whereby Saudi Arabia is the 3rd largest direct foreign investor and the 6th largest trading partner in Morocco”.
Total has operated in Morocco since 1926 and aims to cement its long-term position and support the country's continued growth by welcoming new investors. An affiliate that sells multiple products and is solidly established in its market, Total Maroc is, in fact, a mainstay of Total's downstream business in Africa, through its size, financial performance and ability to provide a deep pool of talent for the Group’s activities worldwide.