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Business News of Saturday, 9 May 2015

Source: Graphic.com.gh

KAMA Industries merges with ASPEN

KAMA Industries, a locally owned pharmaceutical company, has merged with ASPEN Pharmacare Holdings Limited, a South African multinational drug manufacturing company.

The merger which became effective from May 1, 2015, will see KAMA Industries having 35 per cent stake in the company while ASPEN takes 65 per cent.

Speaking at a reception to celebrate the merger, the Chief Executive Officer of KAMA Industries, Dr Michael Agyekum Addo, said the deal would lead to an expansion of the company.

He assured the staff that the merger would not lead to job cuts but rather create more employment opportunities for the youth.

He explained that the decision to cede majority of the company’s stake was a “smart move” because there was the need to inject more capital into the company.

Dr Addo, who is also the Chairman of the Ghana Investment Promotions Council (GIPC), called on the local business community to consider mergering with bigger companies to enjoy the benefits thereof.

According to him, many businesses in the country were struggling to survive, and there was, therefore, the need for them to consider partnering other companies to enable them to become more formidable.

Mr Addo further explained that other KAMA subsidiaries including the KAMA Health Services, KAMA Clinic Limited, KAMA Conference Centre, KAMA Guest House, KAMA Educational Project and the KAMA Estates Limited, which are not part of the merging, would now be branded as Mikado Holdings, because they were not part of the merger.

The ASPEN Regional Executive, sub-Saharan Africa, Mr Nazir Ally, in an interview, said ASPEN was bringing in more capital to expand KAMA Industries to export to other markets in the world.

The merger meant that products from KAMA Industries such as Trex Oris Fort, which is an appitite stimulant, Omega Oil liniment and Kamaclos mouth wash will now be sold on the international market.

Aspen is ranked as the ninth largest generic company in the world, and according to Mr Ally, the merger would help bring on-board more equipment and expert knowledge.

He assured the staff of KAMA Industries that they would maintain both the local professionals and non-professionals, while ASPEN would also bring in more experts such as pharmaceutical engineers as well as people with technical know-how.

Reaching more than 150 countries across the world, Mr Nazir said, ASPEN which is also the largest drug company in Africa, was also going to bring in technology transfer to KAMA Industries and the country as a whole.