KAMPALA, April 6 (Xinhua) -- Total Uganda has become the second largest oil firm in the East African country after it took over Caltex from Chevron, local media reported on Monday.

    With the takeover, Total Uganda now commands a 20 percent market share after Shell Uganda. But there is a 30 Ugandan shilling (about 0.015 U.S. dollars) difference between the two companies' pump prices.

    Total Uganda will now control 140 stations, the largest station network in the country.

    "The new entity (Total Uganda Ltd) will employ more than 2,000 people directly and indirectly," Mamadou Ngom, the Total Uganda managing director, was quoted by the state-owned New Vision daily as saying.

    However, the company does not expect an immediate change in pump prices in the local service stations, although the acquisition of Caltex by Total Uganda will create larger economies of scale.

    "We will be in position to enjoy economies of scale, yes, but we cannot say the price will drop tomorrow because this is linked to international prices. I would be lying if I said that prices are going to change immediately," said Ngom.

    Larroque Guillaume, the deputy director for North and East Africa, was quoted by the daily revealing that Total's expansive takeover of Caltex was motivated by the potential of growth and opportunity in Uganda.

    Company officials were, however, cagey about the cost of the deal estimated to be in millions of dollars.

    The deal, which gives Total control over Chevron, was completed after procedural regulatory approvals. A similar deal was struck in Kenya after Chevron decided to phase out its activities in the region.

    Acquisitions, takeovers and mergers usually allow companies to pool human and capital resources together, which reduce operation costs in the long-run and lead to business efficiencies.

    This is then passed onto the final consumer in the way of lower prices and greater convenience.