Competition Authority of Kenya has approved the proposed acquisition of 100pc shareholding in Rafiki Millers Limited by Kitui Flour Mills Limited unconditionally.
The authority approved the merger stating that the transaction is unlikely to negatively impact competition in the market for wheat milling, nor elicit negative public interest concerns.
“The analysis considers the impact that the proposed transaction will have on public interest which includes extent to which a proposed merger would impact employment opportunities, competitiveness of SMEs, particular industries/sectors and on the ability of national industries to compete in international markets,” said the Authority.
CAK approves transactions of merging parties whose combined turnover or assets is over Kshs 1 Billion.
“The transaction between Kitui Flour Mills Limited and Rafiki Millers Limited met this threshold for mandatory notification and full analysis as provided in the Competition (General) Rules, 2019,” said CAK.
Kitui Flour Mills Limited is the third largest firm after Mombasa Maize Millers and commands 13 pc of the wheat milling market.
The Kenya National Bureau of Statistics (KNBS) shows that the per capita consumption of wheat is approximately 43 kilograms.