Businessman Balvinder Kishori Lal Sahni has acquired a majority shareholding in a Kenyan security company, Securex Agencies Limited that provides security services as well as equipment and accessories.
According to a statement from the Competition Authority of Kenya (CAK), the additional stakes have been acquired through Securex Investments Limited, owned by Kishori Lal Sahni.
The company's investment portfolio includes real estate investment and management, including real, personal, movable, and immovable property.
“The proposed transaction involves the acquisition of a controlling interest of the issued share capital of Securex by Mr. Balvinder Kishori through Securex Investments.”
“Sections 2 and 41 of the Competition Act CAP 504 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. The transaction therefore, qualified as a merger within the meaning of the aforementioned sections.”
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Data from the Private Security Regulatory Authority, which regulates the sector, shows that 763 licensed private security firms were in the country as of February 2024.
G4S has a 19 percent local market share, followed by KK Security (13.05 percent), Security Group (six percent), and Patriotic (five percent).
Others are Wells Fargo (five percent), BM Security (five percent), Riley Falcon (three percent), Securex (three percent), Radar (two percent), and others (38.95 percent).
“One criterion of assessing a merger’s impact on competition is the post-merger market share of the undertakings involved in the transaction. Post-transaction, the merged entity’s market share will not change since it is an acquisition of additional shareholding in the target by an existing shareholder.”
“Further, the proposed transaction will not affect the structure and concentration of the market private security equipment and services. Additonally, the merged entity will face competition from other security firms controlling 97% of the market share.”
