Source: Business Daily
The Competition Authority of Kenya (CAK) has approved the unconditional acquisition of the entire issued share capital of Kenya Bottling Company Limited by Mauritius-based Crown Beverages Limited.
In a Gazette Notice on Friday, the competition watchdog said the approval had been granted based on the finding that the transaction was unlikely to negatively impact competition in the non-alcoholic ready-to-drink beverages, nor elicit negative public interest concerns, the two key considerations during a merger analysis.
Crown Beverages is an undertaking incorporated and registered in Mauritius and does not have subsidiaries or market presence in Kenya.
It is however affiliated with PepsiCo, a Ugandan entity involved in the bottling of carbonated drinks.
Kenya Bottling Company, on the other hand, is a locally incorporated undertaking that operates a bottling plant in Nairobi as an independent bottler for PepsiCo products within Kenya.
“The transaction qualifies as a merger within the meaning of Section two and 41 of the Competition Act No. 12 of 2010 which stipulates that a merger, or takeover, may occur when an undertaking directly or indirectly acquires control over another business within Kenya. This may happen through, among others, purchase/lease of shares, exchange of shares, or vertical integration,” stated CAK.
THE AUTHOR: KABUI MWANGI
