Logistics
firm Kuehne+Nagel (Kenya) Limited is set to acquire rival Morgan Air and Sea Freight Logistics Kenya Limited for an estimated Sh8 billion, marking one of the largest transactions in the industry. The Competition Authority of Kenya (CAK) has approved the deal on the basis that it will not have a negative impact on competition.
“This approval has been granted on the two key considerations during merger analysis that, first, the transaction is unlikely to negatively impact competition in the market, and it will not elicit negative public concern,” said the CAK.
The regulator said the combined market share of the two companies is 21.99 percent against 78.01 percent held by other competitors.
“In June 2023, Kuehne+Nagel signed an agreement to acquire Morgan Cargo, a leading Air Logistics provider in South Africa, the UK, and Kenya. The company specializes in perishables, employs 450 logistics experts, and handled 40,000 tons of air freight and 20,000 TEU in 2022,” read a statement from Kuehne+Nagel.
The firm also acquired Trillvane Ltd. Kenya, which specializes in the export of flowers and vegetables.
Click here to read the full CAK decision on the acquisition by Kuenhe + Nagel (Kenya) Limited.
Source: businessdailyafrica.com