Companies
Dola flour maker gets nod to buy out Rafiki Millers
Monday January 22 2024
Operations at the Kitui Flour Mills plant in Mombasa on June 11, 2022. PHOTO | KEVIN ODIT | NMG
Kitui Flour Mills, the maker of the Unga wa Dola wheat and maize flour brand, has received unconditional approval from the Competition Authority of Kenya (CAK) to fully acquire Rafiki Millers.
The competition watchdog said on Monday that the approval has been granted based on the finding that the transaction was unlikely to negatively impact competition in the wheat milling market, nor elicit negative public interest concerns, the two key considerations during merger analysis.
Rafiki Millers Limited is locally incorporated and operated wheat milling and confectionery business before it closed down in April 2021.
“The proposed transaction involves the acquisition of 100 percent of the issued shares in Rafiki Millers Limited by Kitui Flour Mills Limited,” CAK said in its notice.
Although the actual value of the deal was not disclosed, CAK noted that the combined assets of the two entities exceeded Sh1 billion, hence the requirement to seek approval from the regulator for the proposed transaction.
Kitui Flour Mills Limited is the third largest in the wheat milling market holding a share of 13 percent, after Mombasa Maize Millers (22 percent), makers of Taifa and Ndovu brands, and Ajab miller Grain Industries Limited (15 percent).
There are more than 40 formal grain millers with an 85 percent total wheat milling capacity in Kenya, according to CAK.
