The Competition Authority of Kenya (CAK) has approved Car & General (Trading) Limited (C&G) proposed acquisition of a 50.0% stake in Cummins C&G Holdings Limited from Cummins BV. This acquisition will make Car & General (Trading) Limited (C&G, a fully owned subsidiary of Car & General (K) PLC, the sole owner of the Company.
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The approval comes after Car & General entered into a share purchase agreement with CMI Africa Holdings BV on February 2023 for the acquisition of 50.0% of Cummins C&G Holding Limited.
Cummins C&G Holding Limited was incorporated in Mauritius in 2017 and Car & General and CMI Africa Holdings entered a joint venture. Its core commercial activities include the distribution of power generators and diesel engines, maintenance of power equipment, and sale of filtration and coolant equipment.
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CAK notes that the proposed acquisition is unlikely to lead to a substantial lessening or prevention of competition in the market for power generators, engines, and filtration equipment in Kenya.
Additionally, CAK notes that the transaction will not illicit any negative public interest concerns, specifically on employment, as the employees of Cummins C&G Holding Limited will retain their employment under the same terms.
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The transaction is expected to be complete after this approval, and thereafter Cummins C&G Holding Limited will become a wholly-owned subsidiary of Car and General.
