Canadian tycoon gets CAK nod to acquire KK Security’s parent company

Competition Authority of Kenya (CAK) has approved the merger of two security firms, Doctor No Parent and Garda World Limited. This follows a move by Stephen Crétier, a Canadian entrepreneur and philanthropist.

Crétier, the acquirer, is the chief executive ofcer of GardaWorld Limited. He currently has indirect joint control of the target but does not carry out any other economic activities in Kenya.

Doctor No parent, according to CAK has been operating in the country, through Garda World Limited as KK Security Limited, and the aforementioned move poses no threat in the Kenyan market.

“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for the provision of private security and facility management, nor elicit negative public interest concerns.

These are the two key considerations during merger analysis,” it said in a statement.

“Post-transaction, Crétier will gain control of the target (over 50 per cent shareholding), changing the target’s ownership from joint to sole control.” The undertakings indicated that the rationale of the transaction is aimed at attracting new investors to strategically position Garda World for the next phase of growth.

The regulator defines the provision of private guarding security as the practice of hiring a nongovernment entity to protect people, property or information. It adds that the proposed transaction does not raise competition concerns as it involves an increase of shareholding in the target by the acquirer, meaning that the structure and concentration of the market will not be interfered with.

The Private Security Regulatory Authority’s data indicates that there are 799 registered private securities companies in Kenya. “As per the parties’ submissions, this transaction will not elicit negative public interest issues.

The target is being acquired as a going concern and will continue undertaking its current business activities in Kenya. Premised on the above, the Authority approved the proposed acquisition of sole control of Doctor No Parent Limited by Crétier unconditionally,” CAK further stated.

During merger analysis, the Authority also considers the impact that a proposed transaction will have on public interest. Public interest in this case refers to various economically inclined concepts that, when considered, protect the welfare of the Kenyan public.