The long-delayed takeover bid for BOC Kenya has officially lapsed, concluding an acquisition attempt marked by regulatory disputes and strategic reassessments.
BOC Kenya announced that Carbacid Investments PLC and Aksaya Investments LLP, the entities seeking to acquire the industrial gas company, have withdrawn their offer. This decision follows a reevaluation of the transaction’s viability.
The initial takeover bid, launched in January 2021, was suspended two months later due to a challenge brought before Kenya’s Capital Markets Tribunal. Although the Tribunal cleared the transaction in August 2024, the buyers have since opted to withdraw.
BOC Kenya, a subsidiary of Germany’s Linde Group, confirmed that it is no longer subject to any obligations related to the proposed acquisition. “The Board and Management of BOC Kenya assure our shareholders, employees, and other stakeholders that we remain focused on the growth of the business,” the company stated.
Carbacid, a listed carbon dioxide manufacturer, initially aimed to acquire 100% of BOC Kenya for approximately KSh 1.2 billion. This acquisition was part of Carbacid’s expansion strategy within Kenya’s industrial gas market. However, the extended regulatory process and changing market conditions appear to have altered their strategic priorities.
In November 2024, Carbacid informed shareholders that it would reassess the offer and potentially revise its terms following the extended regulatory delay.
The legal challenge, filed by former BOC Chairman Ngugi Kiuna, may have also contributed to the buyers’ decision. Kiuna argued that the acquisition undervalued the company, disadvantaging minority shareholders. Despite the Capital Markets Tribunal dismissing the case and affirming shareholders’ right to determine fair valuation, Kiuna’s substantial shareholding (over 3 million shares) in BOC Kenya remained a significant factor.
