Acquisition of 100% shareholding in Group One Armoured and Armed Security Services Limited by Kenya Kazi Services Limited
On 29th September 2014, the Competition and Fair Trading Commission received an application from Kenya Kazi Security Services (KK Security) for authorization of a proposed acquisition of 100% shareholding in Group one Armoured and Armed Security Services (Group One Security). KK Security Services Limited was a Kenyan owned company which has its headquarters in Nairobi, Kenya. It's core line of business was providing security services including surveillance of buildings, controlling access to the premises, installing alarms systems and setting up a VHF radio communication Limited. Group One Security is a registered company in Malawi which also provides security services like surveillance of buildings, controlling access to the premises and set up of VHF radio communications network.
The Commission, therefore, reviewed information submitted by the parties and conducted a review of the existing literature and information. The Commission also sought views from third parties. The Commission found that the transaction will not have effect on competition in the relevant market as the acquiring firm does not have physical presence in the country. Further, it was established that the transaction would put the merged firm in a financially sound position while at the same time improving its efficiency and broadening its scope of operations.
Finding that the transaction would not result in change in market structure nor substantial lessening of competition in the security services market in Malawi, the Commission at its 41st Board Meeting held on 6th February, 2015 authorized the acquisition.
