French investment firm, Eurazeo SE, has received an unconditional approval from the Competition Authority of Kenya (CAK) to acquire two firms owned by Bioline Group.
Through Legendre Holding 114, the French firm plans to acquire full control of Bioline Agrosciences Africa Limited and Dudutech Properties, the two subsidiaries of Bioline Group which manufactures pest control products.
“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for pest control products, nor elicit negative public interest concerns,” said CAK in a statement.
Bioline Agrosciences Africa Limited is involved in production and sale of zero-residue biological pest control products while Dudutech Properties Limited which is Bioline Group’s property holding company is involved in property ownership and leases where the firm conducts its operations.
“The proposed transaction involves the acquisition of 100pc of the issued share capital in Bioline Agrosciences and 100pc of the issued share capital in Dudutech Properties. The transaction will enable the seller to recoup its investment, while the facilitating the acquirer to develop the business,” added CAK.
According to the authority, the proposed transaction which is valued at more than Ksh 1 billion will not affect competition in the pesticides market.
Currently, the pesticide market is led by Syngenta which has a market share of 20pc, followed by Bayer AG 15pc, Corteva 7.7pc, FMC Corporation 5.7pc and Adama Agricultural Solutions which has a 4.4pc market share with the remaining being shared by the rest of manufacturers.
“In addition, it is the Authority’s view that the proposed transaction will not lead to substantial lessening or prevention of competition in the market for pest control products in Kenya,” stated CAK.
Eurazeo SE which is an investment holding company involved in private equity, private debt, and real assets currently has $34.85 billion assets under management with no operations in Kenya.
