KCB Seeks Tanzania Approval for 22.23% Stake Acquisition in Pesapal

KCB Group Plc’s proposed acquisition of a 22.23% stake in Kenyan fintech firm Pesapal Limited is under review by Tanzania’s Fair Competition Commission (FCC), with the regulator inviting public comments before deciding on the transaction.

In a notice issued by the FCC, the commission said it has received and commenced reviewing the merger notification, which would result in KCB acquiring indirect control over Pesapal Tanzania Limited through its investment in Pesapal Limited.

Additionally, the FCC said individuals or organisations with a material interest in the transaction, or who believe it could affect competition or their legitimate interests, have 14 days from the first publication of the notice to submit written comments.

“Any person with a material interest in the transaction, or who considers that the transaction may materially affect competition or their legitimate interests, is invited to submit written comments within fourteen (14) days from the first date of publication of this notice,” said the statement.

Transaction Summary

According to the transaction summary, KCB Group Plc is the acquiring firm, Pesapal Limited is the target firm, and Pesapal Tanzania Limited is the Tanzanian business affected by the proposed deal.

The regulator noted that its review and investigation process is already underway.

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KCB Group is a public limited company incorporated in Kenya and listed on the Nairobi Securities Exchange.

Its shares are also cross-listed on the Dar es Salaam Stock Exchange, Uganda Securities Exchange and Rwanda Stock Exchange.

KCB Tanzania

In Tanzania, the banking group operates through its wholly owned subsidiary, KCB Bank Tanzania Limited, which is licensed by the Bank of Tanzania.

Pesapal Limited is a Kenyan payment services provider licensed by the Central Bank of Kenya.

The company operates across Kenya, Uganda, Tanzania, Rwanda and Zambia, offering payment processing and business management solutions to businesses in sectors including retail, hospitality, travel, petroleum, manufacturing, and business-to-business services.

In addition, the FCC said its assessment will consider whether the transaction is likely to substantially lessen competition in any relevant market in mainland Tanzania.

Submissions

It will also examine potential effects on customers, suppliers, competitors, employees and other directly affected market participants.

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Further, the regulator stated that it will consider any verifiable facts or sector information submitted during the consultation period that could assist in evaluating the proposed acquisition.

Any submissions must identify the transaction and clearly state the commenter’s interest in the matter, while confidentiality claims must specify which information should remain protected and the reasons for doing so.

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A photo of a KCB Bank branch. PHOTO/KCB