Ngugi Kiuna’s BOC Kenya eyes growth after Carbacid’s failed deal

Key Points

• BOC Kenya’s Ksh1.2 billion ($10.6 million) deal with Carbacid collapsed after legal and regulatory delays, hindering East Africa’s largest gas supplier merger.
• BOC Kenya, part of Linde Group, is now targeting organic growth, focusing on manufacturing, agriculture, and medical oxygen supply.
• Ngugi Kiuna, former chairman, opposed the buyout due to undervaluation and now redirects BOC Kenya’s strategy toward independent expansion.

BOC Kenya, the Nairobi-based industrial and medical gas manufacturer backed by Kenyan businessman Ngugi Kiuna, is charting a new course for growth following the collapse of its protracted acquisition deal with Carbacid Investments.

More than four years after the initial agreement was signed, Carbacid and its partner Aksaya Investments LLP formally withdrew their joint Ksh1.2 billion ($10.6 million) buyout offer for Ksh63.5 ($0.491) per share, paving the way for BOC Kenya to refocus on standalone expansion.

The proposed deal, announced in early 2021, aimed to create East Africa’s largest gas supplier by merging BOC’s medical oxygen operations with Carbacid’s carbon dioxide business. But the plan was mired in legal challenges, shareholder pushback, and regulatory delays—obstacles that proved insurmountable amid shifting market conditions.

BOC Kenya eyes growth after deal collapse

Now part of Germany’s Linde Group, BOC Kenya is focusing on organic growth to strengthen its position in East Africa’s industrial and medical gas market.

For the year ended December 2024, the company posted a 6.8 percent rise in net profit to Ksh211.6 million ($1.64 million), even as revenue fell 21.7 percent to Ksh1.2 billion ($10.6 million) due to the conclusion of donor-funded health projects.

Leaner operations and stricter cost controls helped BOC boost margins, with renewed focus on growth segments like manufacturing, agriculture, and fabrication.

Former chairman Ngugi Kiuna, a major shareholder and critic of the Carbacid deal, may feel vindicated. He opposed the Ksh63.5 ($0.491) per share buyout offer, valuing BOC at Ksh1.2 billion ($10.6 million), as too low, citing an independent valuation of Ksh91.76 ($0.71) per share. Though the courts cleared the transaction, its eventual collapse highlights concerns among minority shareholders about fair value and long-term potential.

The 2020 joint bid by Carbacid Investments and Aksaya Investments LLP aimed to acquire full control of BOC from longtime shareholders Baloobhai and Amarjeet Patel, who were seeking to consolidate assets for succession planning.

Ngugi Kiuna shifts focus after Carbacid deal collapse

Ngugi Kiuna, founder of Maxam Limited and former chairman of BOC Kenya, is navigating a new direction after the termination of its acquisition deal with Carbacid. In a recent statement, BOC’s board reassured shareholders and employees, emphasizing the company’s commitment to future growth. Plans include expanding bulk liquid oxygen supply to public hospitals and completing donor-funded oxygen plants in remote areas by 2025.

For Carbacid, the failed deal represents a turning point, triggering a strategic reassessment after years of regulatory hurdles. Although Carbacid initially planned to revisit the acquisition in late 2024, it formally withdrew the offer in early 2025. Now, with its path clear, BOC Kenya is positioning itself for independent growth, free from the limitations of the failed takeover, and poised for fresh opportunities in East Africa’s gas market.