CAK approves Kenafric’s acquisition of stationery maker Economic Industries

The Competition Authority of Kenya (CAK) has unconditionally approved the proposed acquisition of Economic Industries Limited by Kenafric Manufacturing Limited.

Kenafric is incorporated in Kenya and controlled by Zarrar Holding Limited. The company manufactures and sells polyvinyl chloride (PVC), ethylene-vinyl acetate (EVA), rubber footwear, and stationery items including exercise books, writing pads, envelopes, notebooks, and counter-books.

Kenafric affiliate manufactures soft drinks, confectioneries, and culinary products.

Economic Industries on the other hand manufactures and distributes school and office stationery products and exercise books.

The acquisition will see Kenafric take over the business and assets of Economic Industries as it expands its activities in the stationery business in Kenya.

Economic Industries intends to exit and liquidate the business, according to a Thursday statement by CAK.

“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for stationery, nor elicit negative public interest concerns,” CAK said.

Kenafric, with a 12.3 per cent market share, is the third-largest stationary company in Kenya after Twiga Stationers and Printers (49.4%) and Kartasi Industries (18.2%), according to CAK data.

Economic Industries Limited is fourth with a 10.3 per cent share, and thus Kenafric’s share will increase to 22.6 per cent post-merger, making it the second-largest player.