The proposed industrial gas manufacturers’ business acquisition will result in one of the largest gas companies.
The transaction entails the Carbacid’s carbon dioxide company acquiring the BOC’s oxygen manufacturing company. BOC is the country’s leading manufacturer and supplier of Acetylene and Oxygen to hospitals. On the other hand, Carbacid’s main product is carbon dioxide used for making fizzy drinks.
Baloobhai Patel, the Carbacid Investments’ main shareholder, is acquiring 100% BOC ownership at Kshs 1.2 billion. He plans to buy the BOC company shares at Kshs 63.5 each.
Mr. Baloobhai holds a 40.38% stake in Carbacid.
Apart from his investment in Carbacid, Mr. Baloobhai has other assets, including 99% ownership in Aksaya investments. It’s in partnership with Aksaya investment, Carbacid will acquire the BOC Kenya company.
The bid to buy out BOC Kenya is viable since combining the two companies’ portfolios will enlarge the company to one of the top industrial gas companies in East and Central Africa.
This move brings in a new twist between the two gas companies. BOC, in 2005 had attempted to buy a significant stake in Carbacid to enter the carbon dioxide market. However, the Capital Markets Authority stopped the transaction. CMA defended their decision by citing breach of contract terms by BOC.