Pineapple processor Del Monte Kenya Limited has received unconditional approval from the Competition Authority of Kenya (CAK) to purchase all of Mananasi Fibre Limited (MFL).
- •The decision makes it possible for Del Monte to acquire MFL, a waste management company that produces compost, biochar, and pineapple fibre.
- •Mananasi Fibre operates three product categories: pineapple fibre for textiles, biochar, and compost manufacturing.
- •Other players in the same sector include TakaTaka Solutions, Eco Nasi, Cookswell Jikos, Biochar Life and Pine Kazi.
“Kenya has the potential to produce 358, 970 metric tonnes of biochar from its maize production activities through small-scale and large-scale farmers,” CAK said in a statement announcing its approval of the deal.
According to the CAK, the deal will not alter the competitive landscape or lead to market concentration. The acquisition gives Del Monte a foothold on the waste management of its processes, as well as adding a new business line.
“The integration of operations and subsequent scaling up of production are likely to create additional employment opportunities for both skilled and unskilled workers,” CAK added.
In 2024, Del Monte Foods Holdings Limited, the parent company of Del Monte Kenya, produced consolidated net sales of $1.74 billion.
Despite a net loss of $118.6 million, largely attributed to lower sales volumes and macroeconomic factors, the company maintained strong liquidity and ended the fiscal year with total assets of $2.34 billion.
