Competition Authority approves acquisition of Pollman’s Tours by European company

The Competition Authority of Kenya (CAK) has approved the proposed acquisition of the entire shareholding in Pollman’s Tours and Safaris by Africa Travel Investments, incorporated in Europe.
Pollman’s, incorporated in Kenya in 1950, provides guided safaris and travel packages to travel agents and tour operators.
According to a statement by the authority, the proposed transaction involves the acquisition of 100% of Pollman’s shares by Africa Travel as Africa Travel Investments seeks to maximise the Kenyan tour company’s potential.
“ 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. This may happen through, among other things, purchase, lease of shares, exchange of shares, or vertical integration,” the statement reads in part.
Acquisition
The authority noted that post-merger, Pollman’s and Africa Travel’s market share will not change, as Pollman’s and Africa Travel are not in a similar business.
“Therefore, the structure and concentration of the markets for tour operators in Kenya will not be affected, and as such, the transaction does not raise competition concerns. It is the Authority’s view that the proposed transaction will not lead to a substantial lessening or prevention of competition in the markets for tour operators in Kenya,” it added.

According to the Kenya Association of Tour Operators (KATO), the local tour operators market has 322 active players, among them Pollman’s, Bonfire Adventures, and Bountiful Safaris, among others.
This comes a few days after the CAK granted unconditional approval to pineapple processor Del Monte to purchase all of Mananasi Fibre Limited (MFL).
“Kenya has the potential to produce 358,970 metric tonnes of biochar from its maize production activities through small-scale and large-scale farmers,” CAK said in a statement.
According to the CAK, the deal will not alter the competitive landscape or lead to market concentration.
The acquisition gives Del Monte a foothold on the waste management of its processes, as well as adding a new business line.
“The integration of operations and subsequent scaling up of production are likely to create additional employment opportunities for both skilled and unskilled workers,” CAK added.
CAK’s mandate
The authority is mandated to enhance the welfare of Kenyans by promoting and protecting effective competition in markets and preventing misleading market conduct throughout Kenya. It controls mergers and acquisitions, deterring anti-competitive conduct such as abuse of dominance and price fixing.