Tycoon takes full control of Coast Cables from family – Business Daily
The Competition Authority of Kenya (CAK) has approved the full acquisition of Coast Cables Limited Atul Premchand Shah, making the businessman the sole owner of the company manufacturing and importing electric cables.
The company which makes over Sh1 billion revenue annually was previously owned by Mr Shah and other shareholders as a family business.
“The CAK has approved the acquisition of sole control of Coast Cables Limited by Atul Premchand Shah unconditionally, as part of restructuring a family-owned business,” CAK stated.
The company has an estimated market share of 14 percent.
Other players in the sector include listed firm, East Africa Cable Limited with 32 percent, Metsec Cables Limited (21 percent) and Kenwest Cables Limited (7 percent).
Other cable manufacturers and dealers (through imports) include Cables and Connectors, Cables and Accessories, African Cables, Cable Connect, IMS Cables, Taifa Cables, and Ret reads and Balco Kenya Ltd.
Imports constitute 26 percent of this market.
“Since the proposed transaction involves the strategic restructuring of a family business, there will be no change in structure and shares in the market, post-transaction. Therefore, it is the Authority’s view that the transaction is unlikely to lessen competition in the industry,” CAK added.