Tag: CAK

Kenya’s competition regulator clears Raysut Cement’s 60% stake sale to Chinese firm Zou Fengqi

Frank

KENYA – Omani cement manufacturer Raysut Cement, which has market presence in Tanzania, Somalia and Sudan and had been eyeing to acquire ARM Cement, wants to sell 60 percent stake to a Chinese firm, Zou Fengqi. The Competition Authority of Kenya (CAK) has exempted the two from filing a notification before it, saying the transaction meets the threshold under the Competition (General) Rules, 2019. Firms trading regionally are by Kenyan law required to seek regulator’s approval for acquisitions and mergers “The acquirer (Zou) had no assets or turnover for the…

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Kenya’s competition watchdog approves sale of insurer ICEA Lion shares

Frank

KENYA – The Competition Authority of Kenya has approved the proposed acquisition of shares of ICEA Lion Insurance Holdings Limited by Eastern Africa Holdings Limited (EAHL) without conditions. The proposed transaction involves the acquisition of 24.1% of the issued shares with veto rights over certain decisions in ICEA Lion Insurance Holdings Limited by EAHL. Eastern Africa Holdings Limited (EAHL) is incorporated in the United Kingdom and is fully-owned by Leapfrog Strategic African Investments (LSAI). “The Competition Authority of Kenya has approved the proposed acquisition of shares, with veto rights, comprising…

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Kenya’s competition authority approves Norfolk hotel sale

Frank

KENYA – The Competition Authority of Kenya (CAK) has approved the buyout of Saudi billionaire Prince Al-Waleed bin Talal stake in the troubled Fairmont The Norfolk and Fairmont Mara Safari Club by Chaudhary Group, which is associated with billionaire Nepalese Binod Chaudhary. The deal, estimated at US$25,6 million, will be the second deal in the region for the Kathmandu-based multinational which also owns Le Relax Hotel in the Indian Ocean island nation of Seychelles. “It is notified that the Competition Authority of Kenya has approved the proposed acquisition of control…

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CAK approves acquisition of minority stake in Naivas by French PE fund

Frank

KENYA – The Competition Authority of Kenya (CAK) has approved acquisition of a minority stake in Kenyan retail chain Naivas by French private equity fund Amethis Finance. Amethis has made the acquisition alongside its partners DEG, MCB Equity Fund and IFC, a member of the World Bank Group. The watchdog while approving the acquisition directed the merged entity to honour all current contracts made by Naivas with local suppliers besides payment of all exiting debts. The approval sets the stage for the continued expansion by Naivas as it seeks to…

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KenolKobil and Gulf Energy merger get cleared with conditions

Frank

KENYA – The Competition Authority of Kenya has conditionally approved KenolKobil’s takeover of Gulf Energy. The oil dealer bought in 2019 by French firm Rubis. Energie has been barred from declaring any Gulf Energy Holdings Limited employee redundant for 24-months, after the transaction. Rubis acquired KenolKobil at a cost of US$356m (KSh35.6 billion) in a new ownership structure that saw the firm delisted from the Nairobi Securities Exchange. “The Authority is of the view that the proposed transaction is likely to lead to redundancies,” CAK said in a statement. The…

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International Finance Corporation acquires 54.23% stake in AAR Healthcare Holdings

Frank

EAST AFRICA – A consortium led by the International Finance Corporation (IFC) is set to acquire a 54.23 percent stake in AAR Healthcare Holdings, the operator of hospitals and clinics in Kenya and other East Africa countries, reports Business Daily. The Competition Authority of Kenya (CAK) approved the proposed transaction which will cost the consortium, Hospital Holding Limited, more than US$15 million (KSh1.5 billion). The regulator says the buyout will not have a negative impact on competition in the local healthcare sector, noting that the consortium intends to make additional…

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Kenya’s communication authority gives new conditions for Airtel-Telkom merger approval

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KENYA – Mobile telecoms regulator, Communication Authority of Kenya (CAK) has spelled out new conditions that Telkom Kenya and Airtel Kenya must meet before their merger is approved. Central to CAK’s authorization is the barring of the soon to be merged entity- Airtel Telkom from entering any other sale transactions in the next five years. The condition essentially blocks the pair from making any further market consolidation efforts to largely see Safaricom retain its market leader position. The CAK further directed that Telkom reverse its 900 megahertz (MHz) and 1800MHz…

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German based Brenntag Holding gets nod to acquire Kenyan firm Desbro

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KENYA – The Competition Authority of Kenya (CAK) has approved acquisition of Kenyan chemical distributor Desbro Limited by Brenntag Holding B.V., a subsidiary of Germany-based chemical distributor Brenntag Group, reports Business Daily. CAK approved the acquisition on condition that Brenntag retains 80 employees who currently work at the firm for a period of one year. The transaction will see 100% acquisition of the Desbro’s Business and assets including intellectual property, business records, equipment, goodwill, licences, stock, third party rights and employees by Brenntag. “Based on the foregoing, it is the…

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