The Competition Authority of Kenya (CAK) has granted unconditional approval for the proposed acquisition of 100% of the shareholding in Pollman’s Tours and Safaris Limited by Africa Travel Investments, a company incorporated in Europe.
Pollman’s Tours and Safaris Limited, established in Kenya in 1950, is a long-standing provider of guided safaris and travel packages, catering to travel agents and tour operators globally.
According to a statement released by the CAK, the proposed transaction qualifies as a merger under the provisions of the Competition Act Cap 504 of the Laws of Kenya.
The Authority noted that Africa Travel Investments aims to leverage Pollman’s Tours and Safaris’ potential within the Kenyan tourism sector.
The CAK has determined that the post-merger market share and structure within the Kenyan tour operator market, which includes over 300 active players such as Pollman’s, Bonfire Adventures, and Bountiful Safaris (according to the Kenya Association of Tour Operators – KATO), will remain unchanged.
This is because Pollman’s and Africa Travel Investments operate in distinct segments of the tourism industry.
“Therefore, the structure and concentration of the markets for tour operators in Kenya will not be affected, and as such, the transaction does not raise competition concerns,” the CAK stated.
“It is the Authority’s view that the proposed transaction will not lead to a substantial lessening or prevention of competition in the markets for tour operators in Kenya.”
The CAK also addressed potential public interest concerns, stating, “As per the parties’ submissions, this transaction is not expected to raise public interest concerns. Specifically, with regards to employment, the parties have submitted that the proposed transaction is not anticipated to lead to the loss of any jobs.”
This decision follows the CAK’s recent unconditional approval of Del Monte’s acquisition of Mananasi Fibre Limited (MFL).
The Competition Authority of Kenya is mandated to promote and safeguard effective competition in Kenyan markets and prevent misleading market conduct.
Its responsibilities include controlling mergers and acquisitions and deterring anti-competitive practices.