The Competition Authority of Kenya (CAK) on Tuesday cleared the Suntory Beverage & Food Kenya Limited’s acquisition by Bidcoro Africa Limited.
CAK stated that the approval has been granted following the finding that the acquisition will have no negative effect on competition in the non-alcoholic ready-to-drink (NARTD) beverages market. In addition, the transaction would not induce negative public interest concerns.
Bidcoro Africa produces, process, market and sells a wide range of products including concentrates, ice lollies and soft drinks. Key Bidcoro’s brands include Suncola, Sunquick, and Suntop.
Suntory Beverage & Food Kenya Limited manufactures, processes and sell soft drinks beverages including the widely known Lucozade and Ribena. Bidcoro is expected to enhance Suntory’s performance.
“The parties indicated that the rationale of the transaction is addressing the target’s underperformance by leveraging on the acquirer’s production and commercialization expertise,”CAK statement read.
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The Kenyan non-alcoholic beverages market is diverse, comprising multiple local companies and multinational corporations. Currently, Coca-Cola Beverages Africa accounts for 65% of the total non-alcoholic beverage market share in Kenya. Delmonte Kenya Ltd takes the second place with 5.23% market share.
Suntory’s market share stands at 1.8% while the market share for Bidcoro & Bidco Africa Ltd is less than 1%.
Thus, the merged entity will control a market share of about 2.8% against 97.2% of market share under the control of competitors.
