CAK has approved French firm Société BIC’s purchase of its stationery, lighters and shavers franchise from businessman Chris Kirubi’s Haco Industries.
Haco earlier this year signed an agreement to relinquish the business to the multinational for an undisclosed sum.
BIC says the transaction is in line with its continued growth strategy in Africa, with the multinational attracted by a positive outlook for the stationery market.
Besides their strong brand, sales of BiC pens have been helped by long relationships with large customers, including companies that order branded units from Haco.
The Competition Authority of Kenya (CAK) has approved French firm Société BIC’s purchase of its stationery, lighters and shavers franchise from businessman Chris Kirubi’s Haco Industries.
Haco, which has been manufacturing and distributing the BIC brand of products for four decades, earlier this year signed an agreement to relinquish the business to the multinational for an undisclosed sum.
“Pursuant to the provisions of section 46 (6) of the Competition Act, 2010, it is notified for general information that … the Competition Authority has authorised the proposed transaction as set out herein,” the regulator said in a notice published in the latest Kenya Gazette.
The approval means the transaction is on track to be completed by January 1, 2019 as earlier announced.
Société BIC said it will review the staffing levels at the unit once it takes charge, adding that it will align the business with its global operations.
BIC will acquire Haco’s semi-automated production plant located in Kasarani as part of the transaction which the Kenyan firm says gives it an opportunity to diversify and grow in the regional markets.
The deal adds to the emerging trend in retail and fast moving consumer goods sector, where multinationals have squeezed out local franchises by buying them out or forcing them into joint ventures.
Such moves have been seen to arise from the desire to take a bigger chunk of profits as well as enforce standards, including pricing, marketing and customer service.
BIC says the transaction is in line with its continued growth strategy in Africa, with the multinational attracted by a positive outlook for the stationery market.
Besides their strong brand, sales of BiC pens have been helped by long relationships with large customers, including companies that order branded units from Haco.
The deal with BIC comes soon after Mr Kirubi regained full control of Haco with the buyback of the 51 per cent stake he had sold to Johannesburg-based Tiger Brands.
Haco will remain with its skin care, home care and hair care line of businesses whose brands include Sosoft fabric softener and Miadi shampoo.
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