The Competition Authority of Kenya (CAK) has authorized Stephan Crétier, a Canadian entrepreneur and philanthropist, to acquire complete ownership and control of Security company KK Security Limited.
CAK in a notice indicated that the decision was made after determining that the acquisition would not hurt competition in the private security and facility management market in Kenya.
Additionally, it determined that the buyout would not raise concerns about the public’s interest.
“The Competition Authority of Kenya has unconditionally approved the proposed acquisition of sole control of Doctor No Parent Limited by Mr. Stephan Crétier, a Canadian entrepreneur and philanthropist,” stated the authority.
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What This Means for KK Security Company
Stephan Crétier is the CEO of GardaWorld Limited, a global private security firm. He already has partial control of Doctor No Parent Limited but is looking to gain full control through this deal.
Doctor No Parent Limited is a company registered in Canada. However, in Kenya, it operates under GardaWorld’s local brand, KK Security Limited.
The security company provides various security services like guards, facilities management, canine (dog) security, VIP protection, and cash transportation.
After the transaction, Crétier will move from joint control (shared ownership) to sole control (over 50% ownership) of Doctor No Parent Limited.
According to CAK, the reason behind the acquisition is to attract new investors and position GardaWorld for future growth.
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Who is the Canadian Billionaire Buying KK Security
Stephan Crétier is the Founder, Chairman and CEO of GardaWorld, the world’s largest privately owned security company.
In 1995, he sold his car and took out a second mortgage to start the company. Since then, he has faced bankruptcy four times, nearly losing his home in the process.
Despite the many challenges, Stéphan’s company today is worth more than $10 billion.
The Private Security Regulatory Authority has registered 799 private security firms in Kenya. Some of the key players include G4S, Wells Fargo Limited, BM Security, Securex Africa Limited, and Panda Security Limited, among others.
This merger is simply an increase in shareholding by the same individual (Crétier), so it does not change the market structure or reduce competition.
The transaction does not raise any concerns about market dominance or fairness according to the Competition Authority of Kenya.
Moreover, Kenya’s Competition Act indicates that any transaction where a business gains control over another company operating in the country is considered a merger. This can involve buying shares, leasing assets, or other forms of ownership change.
Companies involved in a merger must seek approval if their combined annual revenue or assets total more than Ksh1 billion.
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