Thabang Mokopanele
1 October 2008
Johannesburg — FAST-moving consumer goods group Tiger Brands has completed the acquisition of a controlling stake in Kenyan group Haco Industries as it prepares to consolidate its market share in east Africa.
The deal, which was concluded yesterday after a conditional announcement in May, would see Kenyan businessman Chris Kirubi selling 51% of Haco to Tiger Brands for an undisclosed amount.
"This is a very exciting moment for us to experience the execution of our strategy into the greater continent," said group CEO Peter Matlare.
He said from Nairobi yesterday that Kenya had one of the most developed economies in the Common Market for Eastern and Southern Africa (Comesa) region.
Entry into this market would allow Tiger a tariff-free opportunity to trade in the region, which makes up 21 countries with a market of about 385-million people, he said.
Matlare said through the acquisition, Tiger Brands would be able to utilise Haco's distribution capabilities and network to increase Tiger's footprint in the east African and Comesa region as well as take advantage of future growth opportunities.
Tiger said the deal represented a major leap for the two firms that sought to conquer the region and the continent since partnerships had traditionally proven more effective in entering new territories as opposed to starting from scratch.
Taco said it aimed to get access to Tiger Brands' product portfolio and boost its capacity to produce its own products as a strategy to increase its market share and hit back at competition from Asia and Egypt.
Taco hoped to take advantage of the collapse of Reckitt Benckiser, which manufactures household brands such as Dettol, Jik and Harpic.
Reckitt Benckiser closed shop in Kenya last year and ceded production of its flagship brands to a local manufacturing contractor -- Orbit Chemical Industries -- citing difficult market conditions.
Tiger Brands manufactures pharmaceutical, hospital, food and personal and home care products and offers Haco an opportunity to venture into new business segments.
Be the first to Write a Comment!
Copyright © 2008 Business Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
