The Competition Authority of Kenya (CAK) has approved a 51% acquisition of Monarch Insurance by a consortium of three companies. The approval has been granted unconditionally, and will see the consortium, including Ondoba Ltd, Kenyoro Ltd and Equico Thirteen Ltd, become majority owners.
The new transaction is expected to enhance Monarch Insurance’s position in the insurance sector through growth and expansion. The insurance company offers general insurance products including travel insurance, personal accident insurance, motor vehicle insurance, home insurance, medical insurance, property insurance, liability plans, and marine cover.
According to CAK, Ondoba Ltd is a new holding company incorporated for the sole purpose of investing in the financial sector. Kenyoro Ltd and Equico Thirteen Ltd are both incorporated in Kenya, and are investors in the financial sector.
A statement released by CAK read in part, “This approval has been granted on the finding that the transaction is unlikely to negatively impact competition in the market of provision of insurance services, nor elicit negative public interest concerns. These are the key considerations during merger analysis. For completeness, the Authority previously considered and unconditionally approved a transaction involving the target in July 2021. The transaction involved the acquisition of 51pc of the ordinary shares in Monarch by Holmarcom Africa Financial Services.”
CAK has also assured Monarch Insurance employees of job security, since the proposed transaction entails investment in altering its management functions.