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Regulator approval clears hurdles for pending merger deals, Kenya
Regulator approval clears hurdles for pending merger deals, Kenya

Regulator approval clears hurdles for pending merger deals, Kenya

RETAILER NEWS

The-Star.co.ke - Feb 11th 2014, 10:23

The Competition Authority of Kenya has given approval for several pending and ongoing acquisitions.  

In recent gazette notices issued, CAK gave its nod to the full buyout of CMC by Dubai firm Al Futtaim; the acquisition by Artcaffé of seven coffee shops previously owned by Dormans Limited and the takeover of Rafiki Millers and Magic Oven Limited by South African firm Tiger Brands, manufacturer of several grocery, personal and home care brands.

Also in the gazette issue, CAK approved Centum’s buyout of 73.35 per cent of a rival investment management firm Genesis Kenya and the uptake of 16.48 per cent more Scangroup shares by Cavendish Square Holdings, a subsidiary of WPP, a world leader in advertising and marketing services. The deal means WPP is now a majority shareholder in the advertising and PR company with 50.1 per cent stake.

Also, the authority has set the stage for Mauritius Union Assurance to acquire majority stake in Kenyan based Phoenix of East Africa Assurance after saying the proposed acquisition will not be a threat to competition.

In gazette notice number 792, CAK reveals that the Mauritius based insurer wants to acquire 66.38 per cent of Phoenix Assurance. The proposed acquisition of the local insurer, which was approved in October by the board of the Maurtius Union Assurance, is estimated to cost $21.8 million (Sh1.9 billion).

Phoenix gross written premiums stood at Sh218.6 million last year. The assurance company’s market share has been dropping over the last four years according to industry reports compiled by the Association of Kenya Insurers where the firm is listed as a member.

It had a market share of 0.82 per cent as at end 2010 which dropped to 0.69 per cent and 0.57 per cent in 2011 and 2012, respectively. As regards takeover plans of Dorman Coffee shops by Artcaffé, the plan is to revamp the shops which will still trade under the Dormans brand.

Al Futtaim is expected to close its offer to CMC Holdings shareholders for the sale of its shares, which the company is buying at Sh13 a piece to complete the takeover. Al-Futtaim made a cash offer to CMC for the purchase of a 100 percent shareholding in September which will automatically lead to the car distributor being delisted from the NSE.







From The-Star.co.ke 

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