France-based cement conglomerate Lafarge is defending itself against suspicions by the Competition Authority of Kenya that the company could be harming competition in the industry, insisting that it has done nothing wrong and vowing to work with regulators to improve the market.
Reports say Lafarge is under investigation by the Authority over its 59 percent stake in Bamburi cement and 42 percent stake in East Africa Portland Cement, respectively the nation’s largest and third-largest cement makers. Lafarge’s presence through its investments in the nation could potentially give the company too much sway over pricing, regulators are concerned.
But Bamburi has come to the defense of Lafarge, arguing that no one company holds dominance in the industry and therefore could not abuse its market position.
The Competition Authority first announced earlier this month that it may require Lafarge to force asset sales if it is found to hold a dominant grip in the nation’s cement industry.
The government is currently in debate with East Africa Portland shareholders over Lafarge’s interest in the company, reports say.
Full content: Business Report
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