Marcos Holdings gets gov’t approval for Phima Flowers acquisition

The Competition Authority of Kenya (CAK) has approved the proposed acquisition of the entire issued share capital of Phima Flowers by the Dutch investment holding company Marcoz Holding.

CAK said in a statement that it found that the transaction is unlikely to negatively impact competition in the market for growing, processing, and exporting flowers nor elicit negative public interest concerns.

Marcoz directly controls two companies operating in Kenya; one specializing in logistics solutions for fresh-cut flowers, herbs, cuttings, produce, and fruits moving through key international trade lanes; while the other consolidates flowers from growers in Kenya and ships them worldwide.

Phima Flowers is a holding company and has no operational presence in Kenya. Pharma Flowers controls several undertakings incorporated in Kenya that are growers and exporters of cut flowers.

The proposed transaction involves the acquisition of the entire issued share capital of Phima Flowers B.V by Marcoz Holding B.V.

“The transaction, therefore, qualified as a merger pursuant to sections 2 and 41 of the Competition Act, No. 12 of 2010. 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 others, purchase/lease of shares, exchange of shares, vertical integration,” CAK said.

Merging parties whose combined turnover or assets, whichever is higher, is over Ksh. 1 billion are required to seek approval from the authority prior to implementing a proposed transaction. 

In the United Kingdom, supermarkets are the main retail outlets. Kenya flowers are sold in over 60 countries.

The main growers and exporters of flowers in Kenya are; AA Growers, Afriflora, Aquila Flowers, Blacktulip, Flamingo Flowers Herbug Roses, Hola Roses, Isinya Roses, Panda Flowers, and Batian Flowers, among others.