Mauritian Firm Gets Nod to Buy Kenyan Bottling Company

Crown Beverages Limited, a company based in Mauritius, has received clearance to purchase Kenya Bottling Company.

The decision was announced by the Competition Authority of Kenya (CAK), who stated that the acquisition would not have a negative impact on competition in the non-alcoholic ready-to-drink beverages sector, nor would it raise any concerns regarding public interest.

These factors were the key considerations during the analysis of the merger.

Crown Beverages Limited, which is affiliated with PepsiCo, does not have a market presence or subsidiaries in Kenya.

However, it is involved in the bottling of carbonated drinks through its association with PepsiCo, a Ugandan entity. Kenya Bottling Company, on the other hand, is a locally incorporated company that operates a bottling plant in Nairobi.

It acts as an independent bottler for PepsiCo products within Kenya.

The approval by the CAK was based on the definition of a merger in Section two and 41 of the Competition Act No. 12 of 2010.

This stipulates that a merger or takeover can occur when an undertaking directly or indirectly gains control of another business within Kenya.

This can be achieved through the purchase or lease of shares, the exchange of shares, or vertical integration, among other methods.

Source: Business Daily Africa