CAK Approves Acquisition of Kenya Bottling Company by Crown Beverages

The Competition Authority of Kenya (CAK) has unconditionally approved the purchase of all issued shares of Kenya Bottling Company Limited by Crown Beverages Limited, a company based in Mauritius and associated with PepsiCo.

This acquisition is anticipated to strengthen Crown Beverages’ foothold in the Kenyan market by capitalizing on the established distribution networks and brand recognition of Kenya Bottling Company.

According to CAK, this transaction is classified as a merger under Section two and 41 of the Competition Act No. 12 of 2010.

This act states that a merger or takeover can occur when one business gains control over another within Kenya, either directly or indirectly.

This can be achieved through various means such as purchasing or leasing shares, exchanging shares, or vertical integration.

Kenya Bottling Company Limited has been a significant contributor to the Kenyan beverage industry, offering a variety of products to cater to a diverse range of consumer tastes.

In contrast, Crown Beverages Limited, supported by PepsiCo, contributes global expertise and a wide array of popular beverage brands.

With the approval from CAK, both companies are now able to move forward with the acquisition process.

“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,” said CAK.

It will be intriguing to see how this acquisition influences the Kenyan beverage industry’s dynamics in the future.

Parties planning to merge, whose combined assets or turnover exceeds Ksh.1 billion, are obligated to obtain approval from the Authority before proceeding with the intended transactions.

Coca-Cola leads the carbonated drinks market with a 93.9 percent market share, followed by Highlands with 3.6 percent, and then Pepsi with 1.5 percent.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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