Vivo said the completion of the purchase is subject to the satisfaction of certain formalities that are typical for an acquisition of this nature. According to Vivo, the completion of the purchase will result in local Ghanaian shareholdings in Vivo Energy Ghana increasing to just over 25 percent, which fulfills the divestment requirements outlined in Vivo Energy Ghanas oil marketing company license.

Adeyemi Abiona, general manager for Lubcon International Ghana operations, said Lubcon is not threatened by the entry of new players in the lubricant market.

It wont affect our business because we are in the free trade zone, Abiona told Lube Report, referring to the companys site in Tema. Only 30 percent of our products go to the local market while 70 percent is exported to other parts of Africa, and we will still be able to find market for our 30 percent share.

He cautioned that the Ghanaian business environment is fraught with multiple taxations, which make it difficult for businesses to thrive.

We hope that the new entrants will be able to cope with multiple taxations which have discouraged local manufacturing of lubricants in the country, said Abiona. The taxes are so high that there are no local blenders save for Lubcon and Tema Lube Oil Co.; others have packed up.

According to Abiona, many regulatory agencies other than Ghanas National Petroleum Authority even demand taxes in U.S. dollars.

This is the reason there are so many warehouses importing finished lubes rather than manufacturing lubricants in Ghana, he added.