This archive report was first published on 29 October 2019.
On October 29, 2019, the Competition Authority of Kenya (CAK) approved the acquisition of a 33.9% stake in Maziwa Ltd by Pledge Holdco Ltd, a subsidiary of TPG Capital.
TPG Capital, a US-based investment firm, has a significant presence in the Kenyan market, having acquired a 44.04% stake in Cellulant Corporation in 2018.
As part of the deal, Pledge Holdco Ltd will take part in running Maziwa Ltd, which distributes milk and milk-related products across Kenya, Uganda, and Zambia.
CAK director-general Wang'ombe Kariuki signed the approval, stating, 'The Competition Authority of Kenya has approved the proposed subscription of 33.9 percent of the issued share capital and joint control of Maziwa Limited by Pledge Holdco Limited unconditionally.'
TPG Capital also has interests in Kenya's Dodla Dairy Ltd, having acquired a Sh5 billion stake in the company's parent firm in India in 2017.
CAK assessed the market share of Maziwa Ltd and found it to be a minority player with 0.9% market share, compared to other major players in the market.
Post-transaction, the merged entity will have a market share of 3.9%, which is unlikely to raise competition concerns, according to CAK.
