The Competition Authority of Kenya (CAK) has approved Ondoba, Kenyoro, and Equico Thirteen Limited's acquisition of Monarch Insurance.
The three firms have bought 51 percent of the total issued share capital of the underwriter.
Ondoba Limited, which was solely incorporated for the transaction, will invest in the financial sector, while Kenyoro will focus on investment activities.
CAK says Equico Thirteen Limited (Equico) will also invest in the financial services sector, including the insurance industry.
“The Competition Authority of Kenya has approved the proposed acquisition of 51 percent shareholding in Monarch Insurance Company Limited by a consortium of three firms, Ondoba Limited, Kenyoro Limited and Equico Thirteen Limited, unconditionally.”
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“The transaction therefore, qualified as a merger within the meaning of section 2 and 41 of the Competition Act Cap 504”.
The Authority said Equico, Ondoba, and Kenyoro's proposed 51 percent share acquisition will also ratify Monarch's voting rights. Monarch provides composite insurance products, including general insurance, motor solutions, and life insurance.
CAK approved the proposed stake acquisition, stating that the three firms agreed on the decision targeting growth and expansion by enhancing operational efficiencies through partnerships with the new shareholders.
“According to the parties, the rationale for the transaction is business growth and expansion by enhancing operational efficiencies and executing a strategy driven by partnerships from the new shareholders.”
