KENYA – Kuehne+Nagel (Kenya) Limited is set to acquire rival Morgan Air and Sea Freight Logistics Kenya Limited for an estimated KES 8 billion (USD 54.11 million), marking one of the largest transactions in the industry.
The deal has been approved by the Competition Authority of Kenya (CAK) on the basis that it will not have a negative impact on competition.
“This approval has been granted based on two key considerations during the merger analysis. First, the transaction is unlikely to have a negative impact on competition in the market. Second, it will not raise any negative public concerns,” said the CAK.
The regulator stated that the two companies have a combined market share of 21.99 percent, while other competitors hold 78.01 percent.
Kuehne+Nagel tops in market share at 19.1 percent followed by Panalpina Airflo at 17.2 percent while Morgan Air’s market size is 2.89 percent.
Data from the competition watchdog shows there are more than 1,500 freight sea and air freight forwarders registered with the Kenya International Freight and Warehousing Association.
Kuehne+Nagel, headquartered in Switzerland, has operations in countries other than Kenya. The company has been making other acquisitions in sea freight forwarding, air freight shipping and road transport, expanding its global logistics business.
“In June 2023, Kuehne+Nagel signed an agreement to acquire Morgan Cargo, a leading Air Logistics provider in South Africa, the UK and Kenya. The company specializes in perishables, employs 450 logistics experts, and handled 40,000 tonnes of air freight and 20,000 TEU in 2022,” read a statement from Kuehne+Nagel.
The firm also acquired Trillvane Limited Kenya which specialised in the export of flowers and vegetables.
“The acquisition of Morgan Cargo ideally complements Kuehne+Nagel’s perishables logistics service offering, while improving connectivity for customers to and from South Africa, the UK, and Kenya. This includes state-of-the-art cold chain facilities,” read an earlier press release dated June 6 from Kuehne.
South African-based Morgan Cargo operates in more than 16 countries, including Spain, the United Kingdom and Kenya offering logistic solutions for perishable and general cargo.
Kuehne+Nagel’s new cluster
Early this year, Kuehne+Nagel announced the formation of a new cluster to be headed by Alexandre Muratore.
The new West Africa cluster includes Senegal, Nigeria, Ghana, Ivory Coast, Guinea, Burkina Faso, Gambia, Sierra Leone, Liberia, Togo, Benin, Mauritania, and Guinea-Bissau.
Muratore, who will be based in Abidjan, will assume the position of Managing Director. He is responsible for identifying and pursuing new business opportunities, as well as expanding the forwarder’s presence in the region. This is part of a broader strategy to increase the company’s footprint on the continent.
His career with K+N began in 2014 as district branch manager and national sea logistics manager in Angola. In his most recent role, he was the managing director of K+N Qatar.
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