Turkish conglomerate Demirören Holding acquired French oil giant Total's gas stations in Turkey.
A statement by the holding released late Friday stated that the purchasing process for Total's gas stations, supply and logistics assets were completed, which brought the number of Demirören's gas stations to 1,200 throughout the country and tripled its turnover of its energy division to 9.5 billion Turkish liras ($3.3 billion).
The holding's main business activity is distribution and sales on liquefied petroleum gas (LPG) under Milangaz and Likidgaz brands, along with ventures in construction, media, tourism and industry.
Total, which had a five percent market share and listed at sixth place in Turkey's oil distribution sector, has given authority to Société Générale in April 2015 to sell its distribution operation and gas stations in Turkey.
Total has operated in Turkey since 1992 and currently employs 10,000 people in 440 gas stations throughout the country. Reuters have reported that taxes reaching up to 60 percent and tough regulations in Turkey's oil distribution sector may have caused Total to quit Turkey.
Turkey's energy market watchdog Energy Market Regulatory Authority (EMRA) enforces ceiling prices from time to time to protect the consumers, which limits profits for energy companies and their dealers.
Dealer contracts were also limited to five years in 2010, which forces oil companies to spare high amounts to keep their existing dealers and acquire new dealers.
According to EMRA's data, a total of 70 companies operate in Turkey's $80 billion worth oil distribution sector, however, first ten companies make up to 80 percent of the market. Petrol Ofisi A.Ş., which was privatized in 2000 and acquired by Austrian OMV in two phases in 2006 and 2010, is leader of the market with a 25 percent share. OPET is the largest Turkish player of the sector and listed second largest of the market with a 17 percent share, followed by Shell-Turcas and BP.