The Competition Authority of Kenya (CAK) has granted unconditional approval for the proposed acquisition of sole control of Ramco Plexus Ltd by Mauritius-based Ramco Inc. The decision follows an extensive review confirming the merger will neither disrupt competition in Kenya’s printing and packaging markets nor raise public interest concerns.
The transaction follows the exit of joint partner Amethis Africa Finance Ltd., marking a shift from joint to sole ownership. According to the CAK’s statement released on October 31, 2024, the acquisition was evaluated under Kenya’s merger regulations, with the Authority concluding that the change in ownership will not alter market dynamics. “Post-merger, this market share will not be altered since the acquirer does not conduct similar business in Kenya,” the CAK report noted, reinforcing that competition is unlikely to be affected.
Kenya’s packaging market, in which Ramco Plexus holds a 7% share, is highly competitive, with around 180 companies offering both rigid and flexible packaging solutions. Major players in rigid packaging include Blowplast Ltd., Thermopack Ltd., and General Plastics, while companies like Platinum Packaging, Statpack Ltd., and Texplast Industries dominate flexible packaging. The CAK confirmed that the acquisition will not impact this competitive landscape, given Ramco Inc.’s lack of direct business in Kenya’s packaging sector.
The transaction also spans the printing sector, where Ramco’s subsidiary holds a 15% market share, making it a significant player among competitors such as English Press Ltd. with a 10% share, Printpak Kenya and Chrome Partners at 7% each, and Smart Printers and Modern Lithographic at 5% each. “The market structure and concentration of the print market will not be affected, and as such the transaction is unlikely to raise competition concern,” the CAK indicated, pointing to the breadth of competitors in a sector where 46% of the market is held by smaller firms collectively.
According to statements from both Ramco Inc. and Ramco Plexus, the acquisition aims to improve operational flexibility, enhance responsiveness to market changes, and position the company for growth in Kenya’s dynamic business environment. “The proposed transaction will facilitate execution of a growth strategy, enhance the business’ agility and responsiveness to prevailing market dynamics, and increase operational efficiencies,” the merging parties stated in their submissions to the Authority. The acquisition met the CAK’s threshold for mandatory notification, based on combined turnover and asset value exceeding KES 1 billion, which necessitated a full analysis under the Competition Act, CAP 504, to ensure compliance with competitive standards.
In addition to competition analysis, the CAK reviewed public interest considerations, including employment impacts, the effect on the competitiveness of small and medium-sized enterprises (SMEs), and implications for Kenya’s ability to compete globally. The Authority’s findings revealed that the transaction would not negatively impact public interest. “This transaction will not elicit negative public interest concerns,” the report highlighted, reinforcing the rationale for its approval.
The CAK’s decision is aimed at preserving competitive integrity in Kenya’s printing and packaging industries while ensuring that such strategic acquisitions align with broader public welfare objectives.
