Aaryan Investments Limited (AIL) will acquire a 50 percent stake in an animal feed joint venture from Bidco Africa and US conglomerate Land O’Lakes after the Competition Authority of Kenya (CAK) approved the proposed deal.
The proposed agreement involves the acquisition of an additional 50 percent of shares in Bidco by AIL, obtaining full control of the business. AIL, which is incorporated in Kenya as an investment holding company, currently holds 50 per cent of the issued share capital of the target.
AIL controls Bidco Africa Limited which, through its subsidiaries, manufactures fast-moving consumer goods and fruit-based beverages.
“Based on the foregoing, the authority approved the proposed acquisition of a 50 percent equity interest in Bidco Land O’Lakes Limited by Aaryan Investments Limited unconditionally,” the CAK said in a notice.
AIL is buying a further stake in the American firm just months after Bidco Africa partnered with Land O’Lakes to invest Sh1.2 billion in upgrading an animal feed factory in Nakuru.
The joint venture in 2019 said it expected the plant to have a throughput capacity of 28 tons per hour, a move that will increase competition in the industry against existing players like Unga Group.
According to a study by the Kenya Market Trust in 2016, there were 209 registered pet food manufacturers in Kenya and 96 raw material suppliers. Ninety-four entities carry out both business activities.
The distribution areas of feed manufacturers and suppliers are concentrated in the dairy and poultry trade regions.
The main players in this market are Unga Limited, Isinya Feeds Limited, Pioneer Feeds, Empire Feeds, Muringa Limited, Mombasa Maize Millers, Sigma Feeds and Pembe Millers, among others.