The Competition Authority of Kenya (CAK) has approved the acquisition of KK Security Limited by its chief executive Stephan Cretier, in a move that will make him the sole owner of the company.
Mr Cretier currently has an indirect control of KK Security which is owned by GardaWorld Limited, where the Canadian entrepreneur and philanthropist is the CEO. GardaWorld is in turn owned by Canada-based Doctor No Parent Limited.
"The CAK has approved the proposed acquisition of sole control of Doctor No Parent Limited by Mr Cretier ... unconditionally," the regulator said in a statement.
"Post transaction, Mr Cretier will gain control of the target (over 50 percent shareholding), changing the target's ownership from joint to sole control. The undertakings indicated that the rationale of the transaction is to attract new investors to strategically position GardaWorld for the next phase of growth."
The law requires that parties seeking to merge operations must seek CAK’s approval if either of their combined turnover or assets exceeds Sh1 billion, prior to implementing a merger.
There are 799 companies registered to provide private security services in the country, with some of the big players in the sector including G4S, Wells Fargo Limited, BM Security and Total Security Surveillance Limited.
Others are Lavington Security, Riley Security and Ultimate Security.
“The proposed transaction does not raise competition concern as it involves an increase of shareholding in the target by the acquirer.
Therefore, the structure and concentration of the market will not be affected/altered,” the CAK stated.
The large number of players in the industry indicates high competition for the private security services. The most common service offered by the firms is manned security or guarding.
Others include access control, technology-based surveillance (CCTV), cash in transit and cash management.
