The Competition Authority of Kenya (CAK) has approved the takeover of cash-strapped flower firm Oserian Development Company Limited by Bohemian Flowers Limited.
Oserian, which is on the verge of collapsing will see its floriculture business and certain assets taken over by the new firm, saving the jobs of over 700 employees.
Bohemian is owned by Kongoni River Farm Limited, a company that cultivates flowers for export.
“The business has consistently recorded losses since 2017. Additionally, the business is currently in a negative equity position. Based on the foregoing, the Authority noted that the proposed transaction is likely to salvage a failing firm,” said CAK.
If the takeover deal sails through, Bohemian will absorb all the workers that were set to lose their jobs in case the company collapsed.
“The Authority is of the view that the proposed transaction will not have negative effects on employment, but instead salvage livelihoods for over 700 jobs and enhance Kenya’s competitiveness in the market for cut flowers,” said CAK.
Oserian and Bohemian have a combined asset base for the preceding year of more than Kshh1 billion.