Mauritius' Crown Beverages Gets Nod to Acquire Kenya Bottling

Kenya's Competition Authority (CAK) has given the nod for Mauritius-based Crown Beverages Ltd to acquire the entire issued share capital of Kenya Bottling Co Ltd. This unconditional approval, detailed in a Gazette Notice, ensures the merger will not negatively impact competition in the non-alcoholic ready-to-drink beverages sector, nor raise public interest concerns. Crown Beverages, affiliated with Ugandan entity PepsiCo, operates in Mauritius without subsidiaries in Kenya. In contrast, Kenya Bottling Co, locally incorporated, functions as an independent bottler for PepsiCo products in Nairobi.

Merging parties with combined turnover or assets exceeding 1 billion Kenyan shillings ($6.3 million) must seek approval from the CAK. The non-alcoholic beverages market in Kenya, diverse with multinational corporations and local companies, features Coca-Cola as the leading player. CAK emphasizes that the post-merger market share in non-alcoholic ready-to-drink beverages will remain unchanged, as Crown Beverages lacks an existing market presence in Kenya. Public interest factors, including employment impact and competitiveness of small and midsize enterprises, have been considered, ensuring retention of all twenty-seven employees of the target company.