Competition Authority Approves Acquisition of Two Kenyan Companies by French Firm Eurazeo

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The Competition Authority of Kenya (CAK) has approved the acquisition of sole control of Bioline Agrosciences Africa Limited and Dudutech Properties PLC by French private firm Eurazeo SE unconditionally.

CAK said the 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. Legendre Holding 114, the acquirer, is a (SAS) organized under French law, and ultimately owned by Eurazeo SE, a French investment firm with over USD 34.85 billion in assets under management. The acquirer is an investment holding company involved in private equity, private debt, and real assets. It has no operations in Kenya.

The first target company, Bioline Agrosciences Africa Limited, specializes in the production and sale of zero-residue biological pest control products. The second target company, Dudutech Properties Limited, owns or leases the properties where Bioline Africa operates. Both are Kenyan limited liability companies and are fully owned by Bioline Group.

The proposed transaction involves the acquisition of 100% of the issued share capital in Bioline Agrosciences and 100% of the issued share capital in Dudutech Properties. According to CAK, the transaction will enable the seller to recoup its investment, while facilitating the acquirer to develop the business. The transaction qualified as a merger within the meaning of sections 2 and 41 of the Competition Act Cap 504 of the Laws of Kenya. The Act stipulates that a merger, or takeover, may occur when an undertaking directly or indirectly acquires control over another business within Kenya.

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CAK stated that the market for pest control products in Kenya is critical, driven by the country’s high reliance on agriculture, increased urbanization, and public health considerations. The authority added that recent trends show a growing shift toward eco-friendly bio-pesticides and advanced pest control technologies, such as integrated pest management (IPM). Technological advancements, including long-lasting insecticides, are enhancing product efficiency. When analysing mergers, the Authority also evaluates the potential impact on public interest. Public interest, in this context, encompasses various economic factors that are designed to protect the welfare of the public. Under the Competition Act, some public interest considerations include the extent to which a proposed merger would affect employment opportunities and the competitiveness of SMEs.

Additionally, the impact on specific industries or sectors and the ability of national industries to compete in international markets are also key factors in the evaluation process.