The Competition Authority of Kenya (CAK) has conditionally approved the proposed acquisition of certain assets of Style Industries Limited by Hair Manufacturing Kenya Limited.

CAK said in a statement on Monday that it had okayed the acquisition on condition that at least 70 per cent of Style Industries’ employees are retained on employment terms no less favourable than their current terms for 12 months following the completion of the transaction.

The regulator said it had established that the acquisition is unlikely to negatively impact competition in the market for hair extensions and wigs.

Hair Manufacturing Kenya Limited is a private limited liability company newly incorporated in Kenya for the acquisition, while Style Industries, a private limited liability company incorporated in Kenya, manufactures and distributes hair addition products such as braids, weaves and wigs under the brand name Darling.

Style Industries is ultimately controlled by Godrej Consumer Products Limited (GCPL India) and the proposed transaction involves the acquisition of certain assets – plant and machinery, office equipment and inventory – of the company by Hair Manufacturing.

“The proposed transaction will not affect market structure and concentration since Style Industries will exit the market and be replaced by Hair Manufacturing. Additionally, the target will continue to face competition from other players controlling 95 per cent of the market,” CAK said.

“Therefore, the structure and concentration of the market for hair extensions and wigs will not change in Kenya, as a result of the proposed transaction is unlikely to lead to a substantial lessening of competition in the market for hair extensions and wigs.”