July 25, 2023
Car&General (Trading) Limited has received approval from the Competition Authority of Kenya (CAK) to fully acquire Cummins C&G Holdings, meeting all the necessary regulatory requirements. Cummins C&G Holdings, based in Mauritius, is primarily involved in distributing power generators and diesel engines, maintaining power equipment, and selling filtration equipment and coolants. On the other hand, Car and General (Trading) Limited, a subsidiary of Car & General (Kenya) Plc listed on the Nairobi Securities Exchange (NSE), deals with the supply, distribution, and maintenance of power equipment, household goods, agricultural tractors and implements, marine engines, motorcycles and three-wheeler vehicles, commercial laundry equipment, commercial engines, forklifts, excavators, asset financing, and property holding.
This acquisition comes at a time when Kenya’s power generator market is anticipated to grow due to various projects across the country. The establishment of Special Economic Zones (SEZs) and government-backed infrastructure projects, including technology cities and road expansions, is expected to increase the demand for power generators. The telecom sector’s growth, rising manufacturing industries, and business park expansions are also likely to further boost the market for diesel generators.
The CAK stated that the acquisition was approved because it is not expected to negatively impact competition in the markets for power generators, engines, filtration equipment, and coolants. Furthermore, it does not raise any public interest concerns. The proposed transaction involves Car & General acquiring the entire share capital of Cummins C&G, qualifying as a merger under the Competition Act. Transactions with combined turnovers or assets exceeding Sh1 Billion in Kenya require approval from the Authority before implementation.
In assessing the merger’s impact on competition, one criterion is the post-merger market share of the involved undertakings. In this case, since the transaction only involves an increase in shareholding by the acquirer in the target company, it is not expected to raise any competition concerns or affect the market structure and concentration.
Based on these considerations, the proposed acquisition is not likely to lead to a significant reduction or prevention of competition in the power generators, engines, filtration equipment, and coolants markets in Kenya.
photo source: google
Delino Gayweh
Serrari Financial Analyst
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
