The Competition Authority of Kenya (CAK) has approved the acquisition of investment holding company Ramco Plexus by its parent company Ramco Inc.
- •Ramco Inc., based in Mauritius, jointly owned Ramco Plexus with Paris-based equity firm, Amethis, but it had no commercial operations in Kenya.
- •After Amethis exited, Ramco inc. was mandated by law to seek approval from CAK to be the sole owner of the company, as it is perceived as a merger according to Sections 2 and 41 of the Competition Act.
- •Ramco Plexus invests in several subsidiaries dealing with digital printing, flexible packaging, supply of paper, polystyrene, POS solutions, branded promotional gifts, and press supplies.
“As per the parties’ submissions, this transaction will not elicit negative public interest concerns. Premised on the above, the Authority approved the proposed acquisition of sole control of Ramco Plexus Ltd by Ramco Inc. unconditionally,” CAK said in a statement.
Before the proposed sole ownership, Ramco Plexus also held 7% of the packaging market. Its main competitors : Texplast Industries Limited, Statpack Industries Limited, and Packaging Industries Limited also own 7% of the market share each.
“Post-merger, this market share will not be altered since the acquirer does not conduct similar business in Kenya. Therefore, the structure and concentration of the market for packaging will not be affected and as such the transaction is unlikely to raise competition concern,” CAK added.
Ramco Plexus’ subsidiary in the printing market has 15% market share. Its closest competitors in this niche are English Press Limited with 10% of market share, and 7% market share each for Printpak Kenya, and Chrome Partners Limited.
“Based on the foregoing analysis, the proposed transaction is unlikely to lead to a substantial lessening or prevention of competition in the print and packaging markets in Kenya,” CAK concluded.