The Competition Authority of Kenya (CAK) has approved the acquisition of select assets from Style Industries Limited by Hair Manufacturing Kenya Limited.
However, Hair Manufacturing Kenya Limited must retain at least 70 per cent of Style Industries employees on employment terms that are no less favourable than their current terms for 12 months following completion of the transaction.
The competition watchdog has okayed the transaction as it is unlikely to negatively impact competition in the market for hair extensions and wigs even though it is likely to elicit negative public interest.
Hair Manufacturing Kenya Limited is a private limited liability company incorporated in Kenya. Since it was just recently created for the sake of this transaction, it does not currently have any operations in Kenya.
On the other hand, Style Industries is a Kenyan-incorporated private limited liability business. Its main business is producing and selling hair extension goods such as wigs, braids, and weaves under the Darling brand. Godrej Consumer Products Limited is the ultimate controlling entity of Style Industries (GCPL India).
“The proposed transaction involves the acquisition of certain assets- plant & machinery, office equipment and inventory of Style Industries by Hair Manufacturing. The transaction, therefore, qualified as a merger within the meaning of Section 2 and 41 of the Competition Act No. 12 of 2010,” stated CAK.
Merging parties whose combined turnover or assets over Ksh1 billion are required to seek approval from the Authority prior to implementing the proposed transaction.
Data from the Indian import-export database company Volza estimates that Kenya shipped 49 hair extensions annually in 2021. These shipments belonged to 21 importers who accessed their products from 20 suppliers from the Asian country.
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