The Competition Authority of Kenya (CAK) has approved the acquisition of a West Pokot-based cement business Cemtech Limited by Simba Cement Limited in a move that is set to give the factory a lifeline after several failed attempts to start operations.
The regulator gave Simba Cement, a subsidiary of the Devki Group of Companies, the go-ahead to buy 100 percent of the business and assets of Cemtech owned by Indian conglomerate Sanghi Group.
Following the nod, Devki Group is set to acquire all its land, intellectual property, business records, equipment, goodwill, licences, stock and third party rights for an undisclosed amount of money.
Cemtech has limestone and clay deposits, and the requisite licences in West Pokot County.
"We are still negotiating with Cemtech and we hope to close the deal soon. We are eager to venture into West Pokot to change its perception and the lives of its people for the better," said Narendra Raval, founder and chairman of Devki Group.
The merged entity will have a market share of eight percent, CAK said.
It targets to sell the cement locally as well as in Uganda and South Sudan.
"The Authority considered that Cemtech has been dormant for a decade. Its shareholders have been looking a strategic partner to finance construction of a cement plant. The proposed acquisition is therefore expected to resuscitate the dormant firm, create jobs and raise the economic profile of West Pokot County," said CAK.