The Competition Authority of Kenya (CAK) said that it approved the proposed takeover as the transaction is unlikely to negatively impact competition in the sector and elicit negative public interest concerns.
However, the competition watchdog did not provide the value of the acquisition.
“The Competition Authority of Kenya has approved the proposed acquisition of sole control of Morgan Air and Sea Freight Logistics Kenya Limited by Kuenhe + Nagel (Kenya) Limited unconditionally,” CAK said in a statement.
“This approval has been granted based on the two key considerations during merger analysis that; first, the transaction is unlikely to negatively impact competition in the market for air freight forwarding of perishable goods; and second, the transaction will not elicit negative public interest concerns,” it added.
CAK adds that the two entities command 21.99 percent of the market share out of the total 78.01 percent that is controlled by other rivals.
While Kuenhe+Nagel’s market share stands at 19.1 percent in the country, Morgan’s is at 2.89 percent.
Kuenhe+Nagel (Kenya) Limited, which is incorporated in Kenya with a parent company in Switzerland, is a logistics partner that provides end-to-end logistics solutions such as seafreight, airfreight, as well as road and rail logistics.
On the other hand, Morgan Logistics, a Kenyan firm, handles, transports, and delivers perishables such as flowers, fruit, and vegetables by aircraft.
CAK data indicates that there are more than 1,500 freight sea and air freight forwarders registered with the Kenya International Freight and Warehousing Association.
Data from the Kenya Airports Authority indicates that the major market players in this market are Acceler (K) Ltd, Siginon, Mechanised freight; Kuehne + Nagel, Freight Wings Ltd, DSV Panalpina, Freight In Time, Liftcargo, Perseus Forwarders, and Freight Forwarders Kenya.
