Kenya's Competition Authority Approves Crown Beverages' Acquisition of Kenya Bottling Company

Announcing a significant development, the Competition Authority of Kenya (CAK) has greenlit the acquisition of Kenya Bottling Company Limited by Crown Beverages Limited, a Mauritius-based company affiliated with PepsiCo.

The approval, announced through a Gazette Notice, indicates that the merger has been assessed to have no adverse effects on competition and public interest.

Crown Beverages has already operational in Uganda with a focus on bottling carbonated beverages, will now extend its reach into Kenya.

Meanwhile, Kenya Bottling Company has been serving as an independent bottler for PepsiCo products in the Kenyan market, running its bottling facility situated in Nairobi.

Regulatory Parameters and Evaluation Criteria

The merger transaction aligns with the definitions outlined in Sections 2 and 41 of Kenya's Competition Act No. 12 of 2010.

Such a classification is applicable when one business entity gains direct or indirect control over another enterprise operating within Kenya's borders.

CAK, mandated as the overseeing authority, rigorously evaluates such mergers, particularly when the combined turnovers or assets involved surpass Sh1 billion.

Kenya's non-alcoholic beverage sector is characterized by a vibrant landscape that encompasses both multinational conglomerates and indigenous players, each catering to distinct consumer needs.

In its scrutiny of this merger, the CAK has delved into post-merger market share dynamics.

Crucially, the competitive landscape for non-alcoholic ready-to-drink beverages is projected to remain unaltered, given that Crown Beverages has yet to establish a foothold in the Kenyan market.

Joel Omulo / TheFounder