Aaryan Investments Limited (AIL) is set to acquire a 50 percent stake in an animal feed joint venture by Bidco Africa and American Conglomerate Land O’Lakes after the Competition Authority of Kenya (CAK) approved the proposed deal.
The proposed deal involves the acquisition of an additional 50 percent shares in Bidco by AIL, gaining full control of the business. AIL, which is incorporated in Kenya as an investment holding company, currently owns 50 percent of the target’s issued share capital.
AIL controls Bidco Africa Limited which, through its subsidiaries, manufactures fast-moving consumer goods and fruit-based drinks.
“Based on the foregoing, the authority approved the proposed acquisition of 50 percent shareholding in Bidco Land O’ Lakes Limited by Aaryan Investments Limited unconditionally,” said the CAK in a notice.
AIL is buying more stake in the American firm barely a few months after Bidco Africa teamed up with Land O’Lakes to invest Sh1.2 billion in the upgrade of an animal feed factory in Nakuru.
The joint venture in 2019 said it expected the plant to have a processing capacity of 28 tonnes per hour, a move that will raise competition in the industry against existing players such as Unga Group.
According to a study undertaken by the Kenya Market Trust in 2016, there were 209 registered animal feed manufacturers in Kenya and 96 suppliers of raw materials. Ninety-four entities engage in both commercial activities.
Distribution zones of the feed manufacturers and suppliers are concentrated in the commercial dairy and poultry regions.
The major players in this market are Unga Limited, Isinya Feeds Limited, Pioneer Feeds, Empire Feeds, Muringa Limited, Mombasa Maize Millers, Sigma Feeds and Pembe Millers, among others.
