NAIROBI, Kenya, Mar 13 – The Competition Authority of Kenya (CAK) has approved the merger between Mobius Motors and Silver Box after a thorough evaluation of the proposed transaction.
The decision was made following a review of the parties’ financial standing, which indicated that their combined turnover or assets were below the threshold stipulated by the Competition Act.
This means that the troubled auto maker will resume its operations following the buyout.
Under the provisions of the Competition Act, any merger or acquisition where the combined turnover or assets exceed Sh1 billion requires prior approval from the CAK.
However, in this case, the combined financial figures of Mobius Motors and Silver Box were found to be below the Sh1 billion threshold, allowing for the transaction to proceed without raising any competition or public interest concerns.
The CAK’s assessment emphasized that the merger would not distort market competition.
“The transaction will not raise competition or public interest concerns,” the Authority stated.
The decision was also influenced by the positive impact the transaction is expected to have on the economy.
“This merger will salvage a failing firm, thereby securing jobs and enabling the business to continue contributing positively to the economy.”
The merger, approved in October 2024, is seen as a strategic move to support the long-term stability of both companies while fostering a healthier business environment in Kenya.
The authority has stressed that its decisions are always guided by the principles of fair competition, ensuring that all business activities within the country are conducted in a manner that supports both economic growth and public welfare.
