The Competition Authority of Kenya (CAK) has okayed the full acquisition of KEL Chemicals Ltd., a phosphate and sulfuric acid producer based in Thika, Kiambu, by five investors, according to a June 5 report from Capital Business.
The investors are Jeetendra Kumar Somchand, Mahendra Kumar Somchand Haria, Pankaj Somchand Haria, Pradip Somchand Haria, and Deveshkumar Bhupendrabhai Patel. The approval followed a determination that the takeover will have no negative impact on competition or attract negative public interest.
CAK said in a statement that the transaction, which involves the acquisition of all shares in KEL Chemicals, qualifies as a merger or takeover. “Post-merger, there will be no change in the various market structures and concentrations in sectors since the parties’ commercial activities do not overlap,” CAK said.
“Therefore, the proposed transaction is unlikely to lead to a substantial lessening of competition in the relevant market or raise any competition concerns,” CAK said. “Additionally, the merged entity will continue to face competition from the other players in the markets.”