NAIROBI, Kenya, June 5 – United Kingdom (UK) investment holdings company Flamingo Horticulture Investment Limited (Flamingo) has acquired Naivasha-based flower firm Bigot Flower Kenya Plc for undisclosed amount.
The Competition Authority of Kenya (CAK) approved the acquisition of the entire share capital of Bigot by Flamingo.
While Flamingo is involved in the growing, processing, marketing, and distribution of roses and other cut flowers, Bigot grows, packages, markets, and distributes rose flowers.
“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for growing, processing, and exporting flowers, nor elicit negative public interest concerns, the two key considerations during merger analysis,” CAK said in statement.
Agriculture is the largest sector of Kenya’s economy, accounting for about 20 percent of GDP in 2021.
According to the Economic Survey 2022, the value of horticulture exports in 2021, including cut flowers, was Sh157.7 billion.
The marketed value of cut flowers in the year under review was Sh110.8 billion.
Kenya is the leading exporter of rose cut flowers to the European Union (EU), with a market share of 38 percent.
Approximately 50 percent of exported flowers are sold through Dutch auctions, although direct sales are increasing.
In the United Kingdom, supermarkets are the main retail outlets. Kenyan flowers are sold in over 60 countries.
During the merger, CAK considered the extent to which a proposed merger would impact employment opportunities and the competitiveness of SMEs.
Other factors were the impact on particular industries or sectors and the ability of national industries to compete in international markets.
“As per the parties’ submissions, this transaction will not elicit negative public interest concerns. Specifically, the target’s 1,000 employees will retain their employment under the same terms,” CAK added.
“Premised on the above, the Authority approved the proposed acquisition of the entire issued share capital of Bigot Flowers Kenya Plc by Flamingo Horticulture Investments Limited unconditionally.”
