Saudi Arabia’s Zahid Group is a 30% shareholder in Total Maroc, a marketing and services affiliate of French oil and gas company, Total.
The news comes following Total’s decision to invite direct foreign investment in the company.
Total Maroc is also preparing an initial public offering (IPO) on the Casablanca Stock Exchange, which will allow individual Moroccan shareholders and institutional investors to acquire 15% of the company’s shares.
“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,” said Momar Nguer, senior vice president for Africa and the 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.
This is not the first time that Total and Zahid have worked in tandem. In 2006, the companies formed Saudi Total Lubricants Company Ltd (SATLUB) in Saudi Arabia. This joint venture specialises in the manufacturing and marketing of automotive, industrial, marine lubricants, and specialty products marketed within the Kingdom.
Indeed, Zahid Group’s decision to invest in Total Maroc is the result of a decade of successful collaboration, according to president and CEO, Waleed Y Zahid.
“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,” he commented.
“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.
“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 third-largest direct foreign investor and the sixth-largest trading partner in Morocco,” Zahid concluded.
Through its investment in Total Maroc, Zahid Group has stated that it is reinforcing its strategic relationship with Total, whilst contributing to a promising Saudi-Moroccan economic partnership. Total will continue to operate and retain a controlling interest in Total Maroc.
