UK  Firm Flamingo Acquires  Bigot Flower Kenya

Kenya loses 25% of flower market in the EU

The Competition Authority of Kenya has Approved the acquisition of Naivasha-based flower firm Bigot Flower Kenya by the United Kingdom investment holdings company Flamingo Horticulture Investment Limited

The Competition Authority of Kenya  approved the acquisition of the entire share capital of Bigot by Flamingo.

The deal comes at a time that the flower industry is struggling, the margins shrinking by the day and growers struggling to supply the market and maintain Kenya’s position as a key producer of cut flowers and ornamentals.

During the merger, CAK considered the extent to which a proposed merger would impact employment opportunities and the competitiveness of SMEs.

“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for growing, processing, and exporting flowers, nor elicit negative public interest concerns, the two key considerations during merger analysis,” CAK said in a statement

Other factors were the impact on particular industries or sectors and the ability of national industries to compete in international markets.

“As per the parties’ submissions, this transaction will not elicit negative public interest concerns. Specifically, the target’s 1,000 employees will retain their employment under the same terms. Premised on the above, the Authority approved the proposed acquisition of the entire issued share capital of Bigot Flowers Kenya Plc by Flamingo Horticulture Investments Limited unconditionally,” CAK added.

According to the Economic Survey 2022, the value of horticulture exports in 2021, including cut flowers, was Sh157.7 billion.

The marketed value of cut flowers in the year under review was Sh110.8 billion.

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