The Competition Authority of Kenya (CAK) has approved the acquisition of 100% of Mananasi Fibre Limited (MFL) by Del Monte Kenya Limited in a deal poised to shake up Kenya’s pineapple waste and green products sector.
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CAK said the merger does not raise competition or public interest concerns.
“The transaction is unlikely to negatively impact competition in the markets for textile grade pineapple fibre, compost, and biochar production,” the authority said in a statement on Monday, May 5.
Del Monte Kenya, already a major player in pineapple farming and processing, is looking to integrate vertically by tapping into MFL’s expertise in waste transformation.
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MFL, known for converting pineapple plant waste into eco-friendly products, specializes in fibre extraction, compost production, and biochar manufacturing.
“This acquisition brings on board a sustainable solution for pineapple waste disposal, aligning with Del Monte’s long-term environmental goals,” the company noted in its submission to the Authority.
The authority’s assessment revealed that despite the merger, market structure and concentration would remain unchanged.
“The seller exits and the buyer enters. There’s no increase in market share, hence no substantial lessening of competition,” CAK explained.
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Impact on jobs, SMEs
The deal also passed the public interest test. According to the authority, the acquisition is likely to create more job opportunities and does not threaten the survival of SMEs in the compost and fibre sectors. Additionally, MFL’s operations will continue unaffected under new ownership.
Currently, Kenya’s pineapple waste industry is still developing, with few major players like Pine Kazi and Eco Nasi in the fibre space, and firms such as TakaTaka Solutions and Garbage.Com in compost production. For biochar, MFL competes with the likes of Cookswell Jikos and Biochar Life.
