Del Monte Kenya Gets Green Light for 100% Mananasi Fibre Share Purchase
- CAK has approved Del Monte Kenya’s acquisition of 100% of Mananasi Fibre Limited, citing no threat to market competition
- Mananasi Fibre specialises in converting pineapple waste into textile-grade fibre, compost, and biochar, and will now be fully controlled by Del Monte
- CAK’s analysis found that the merger will not alter market structures or lead to a dominance issue, as it involves a simple transfer of ownership
Elijah Ntongai, a journalist at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan and global trends.
Nairobi — The Competition Authority of Kenya (CAK) has given an unconditional nod to Del Monte Kenya Limited’s acquisition of 100% of Mananasi Fibre Limited.
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The deal, which qualifies as a merger under Kenya’s Competition Act, will see Del Monte take full control of Mananasi Fibre.
Mananasi Fibre is a firm that turns pineapple waste into textile-grade fibre, compost, and biochar.
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Why did CAK approve Del Monte's deal?
CAK’s approval was based on a detailed analysis that found the merger poses no risk to fair competition in the emerging markets of eco-friendly fibres and agricultural waste recycling.
According to CAK, the transaction does not alter market structures in the relevant segments, including textile-grade pineapple fibre, compost production, and biochar.
"The acquisition will not result in a change in market share, as the seller will exit and the buyer will enter, maintaining the current level of competition," CAK stated.
Del Monte, known for its large-scale pineapple farming and canning operations, is expected to benefit from Mananasi Fibre’s sustainable waste solutions by repurposing its pineapple byproducts.
Mananasi Fibre has been a key player in utilising pineapple plant waste to manufacture compost and biochar, soil enhancers that are gaining traction amid climate change-driven agricultural shifts.
The company also operates in the sustainable textile sector, producing fibre used as a plant-based alternative to leather and synthetic materials.
Who produces pineapple fibre in Kenya?
The CAK report noted that Mananasi Fibre faces competition from players such as Pine Kazi, Eco Nasi, and smallholder compost makers across the country.
Similarly, biochar producers like Biochar Life, Biosorra, and Tera Carbon continue to operate in a competitive yet underutilised space with high potential for growth.
The Authority also determined that the acquisition would not negatively affect public interest factors, including employment and SME participation.
"As per the parties’ submissions, this transaction is not expected to raise public interest concerns. The integration of operations and subsequent scaling up of production are likely to create additional employment opportunities for both skilled and unskilled workers. Furthermore, the target’s business plan will remain unaffected. The merger, in addition, is not expected to hinder SMEs access to this key market," CAK reported.
Instead, the merger could stimulate job creation through the expansion of processing capacity and greater operational integration.
CAK approves KK Security Ltd acquisition
In other news, Canadian businessman Stephan Crétier has received the go-ahead from the Competition Authority of Kenya to take full control of KK Security Ltd by acquiring its parent company, Doctor No Parent Ltd.
Crétier, who is the CEO of both KK Security and GardaWorld Ltd, will now hold a controlling stake of over 50% in the firm, which offers services including cash-in-transit, VIP protection, canine security, and facilities management.
The watchdog approved the deal unconditionally, noting it poses no threat to competition or public interest in Kenya’s private security and facilities management sectors.
Source: TUKO.co.ke
