The Competition Authority of Kenya (CAK) has given the green light for Metal Cans and Closures Kenya Limited to acquire the assets of Nampak Kenya Limited.

This approval is unconditional, meaning there are no restrictions or conditions attached to the acquisition.

The deal will see Metal Cans and Closures Kenya Limited expand its business by venturing into the production of food cans, crown caps, and shoe polish containers.

The acquisition includes plant and machinery, properties, and inventory from Nampak Kenya, which is set to close down its operations.

The CAK determined that this transaction would not lessen or prevent competition in the market for metal packaging materials in Kenya.

The combined market share of the merged entity is expected to be around 4%, facing competition from the remaining 96% of the market.

Nampak Kenya Ltd in Thika closed its operations due to financial difficulties and a challenging business environment. The company faced increased competition and rising operational costs, which made it difficult to sustain its operations.

The closure was part of a strategic decision by its parent company, Nampak, a South African firm listed on the Johannesburg Stock Exchange, to streamline its operations and focus on more profitable ventures.

The closure was announced in early February 2025, and the assets of Nampak Kenya Ltd were acquired by Metal Cans and Closures Kenya Limited.