Aliko Dangote and Dave Rubenstein have made a strategic investment in Kenya’s tourism sector by acquiring Pollman’s Tours and Safaris through their investment firm, Alterra Capital.
The move aims to boost growth in Kenya’s thriving tourism industry, with the Competition Authority of Kenya confirming that the acquisition will not affect market competition or lead to job losses.
According to africa.businessinsider, Alterra Capital, a private equity firm backed by American billionaire Dave Rubenstein and Aliko Dangote, made an investment in ARP Africa Travel Group, the company that runs Pollman’s, in February.
The firm, in an attempt to tap into one of Kenya’s largest sectors, tourism, recently decided to purchase Kenya’s oldest tour company, Pollman’s Tours and Safaris.
“With regard to the proposed transaction, post-merger, the market share of the merged entity will not change as the target and the acquirer are not in similar business and therefore the structure and concentration of the markets for tour operators in Kenya will not be affected,” the regulator said in a statement.
As per to the Competition Authority of Kenya (CAK), the composition and concentration of Kenya’s decentralized tour operator industry, which is home to more than 300 companies including Bonfire Adventures and Bountiful Safaris, would not alter.
In addition, the regulator came to the view that the acquisition does not threaten jobs or the competitiveness of small businesses, two major public interest issues under Kenyan merger rules.
The parties said that the transaction will not result in any job losses, as reported by the Kenyan Wall Street.
Dangote operations in other African countries
Aliko Dangote is no stranger to operating in foriegn markets.
Very recently, in a similar move for regional integration, Aliko Dangote expanded his agro-industrial conglomerate into Ghana with the launch of a massive sugar refinery project in Kwame-Danso, Bono East Region.
The initiative, financed by Dangote Sugar Refinery Plc, is a daring bid to enter Ghana’s $162 million yearly sugar import market while also helping the government’s “One District, One Factory” industrialization strategy.
The cutting-edge facility will be capable of processing 12,000 tons of sugarcane per day and will be supported by a 25,000-hectare irrigated plantation.
In addition to refined sugar, the facility will create high-value byproducts, including molasses and ethanol, opening up potential in the agro-processing and biofuel industries.
Since the launch of his oil refinery, the Nigerian businessman has exported petroleum products to Saudi Arabia, North America, and very recently, Turkey.
Dangote Cement alone operates in 10 African countries, including Cameroon, Ethiopia, Ghana, Senegal, Sierra Leone, and South Africa, amongst others.
