Mobil Oil, now known as Double 11, and Nipco Plc, are fostering a relationship that would lead to the expansion of the businesses of the two players and further improve the operation of the downstream sub-sector of the industry, its Managing Director, Mr Tunji Oyebanji, has said.

He said the decision by Nipco Plc to buy 60 per cent shares in Mobil was good, adding that it would lead to increased profitability as well as make the company to compete favourably. Speaking on the sideline of a promo organised for its customers in Ibadan, the Oyo State capital, he said it was difficult to describe the relationship between the two firms as a synergy, since they are operating independently.

Oyebanji said: “I do not know whether to describe the relationship between Nipco Plc and Mobil Oil as a merger or partnership, as they are still operating separately. But what I know and convinced of is that the two companies would help in consolidating activities in the downstream sub-sector, when they eventually come together to produce a bigger role in the industry.”

Source: The Nation

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