Crown Beverages Limited has received unconditional approval from the Competition Authority of Kenya (CAK) for the acquisition of the entire issued share capital of Kenya Bottling Company Limited, as announced in a Gazette Notice on Friday.

The approval comes after the CAK conducted a thorough analysis and concluded that the transaction is unlikely to have adverse effects on competition in the non-alcoholic ready-to-drink beverages sector and does not raise public interest concerns.

“The Competition Authority of Kenya has approved the proposed acquisition of the entire issued share capital of Kenya Bottling Company Limited by Crown Beverages Mauritius Limited unconditionally,” CAK stated.

“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for growing, processing, and exporting flowers, nor elicit negative public interest concerns, the two key considerations during merger analysis.”

Read More

  1. Kenafric’s expansion gains CAK approval in economic industries acquisition
  2. Watu Simu hits 1 millionth customer milestone in Kenya’s mobile finance market
  3. Kenya’s African exports hit Sh248.7 billion, climbing 26 per cent on robust trade ties

The transaction, characterized as a merger under Sections 2 and 41 of the Competition Act No. 12 of 2010, involves Crown Beverages, a Mauritius-based undertaking affiliated with Ugandan entity PepsiCo, acquiring control over Kenya Bottling Company.

The CAK highlighted that mergers may occur through various means, such as the purchase or lease of shares, exchange of shares, or vertical integration.

Merging parties with combined turnover or assets exceeding Sh1 billion are obligated to seek approval from the CAK before implementing intended transactions.

The CAK, in assessing the impact on competition, considers factors such as the post-merger market share of the involved undertakings.

“Further, merging parties whose combined turnover or assets, whichever is higher, is over Sh1 billion are required to seek approval from the Authority prior to implementing the proposed transaction,” the authority stated.

“The transaction between Crown Beverages and SBC Kenya met this threshold for mandatory notification and full analysis as provided in the Competition (General) Rules, 2019.”


In this case, the CAK clarified that the post-merger market share for non-alcoholic ready-to-drink beverages will remain unchanged as Crown Beverages currently has no market presence in Kenya.

Public interest factors, including employment opportunities, competitiveness of SMEs, impact on specific industries, and the ability to compete in international markets, were also considered.

The CAK, based on the parties' submissions, determined that the transaction would not raise negative public interest concerns particularly matters relating to employment.

All 27 employees of Kenya Bottling Company will be retained, ensuring no employment losses.

"As per the parties’ submissions, this transaction will not elicit negative public interest concerns. Specifically, there will be no employment loss and all the current 27 employees of the target will be retained," CAK stated.

This approval marks a significant step for Crown Beverages, paving the way for a strategic expansion into the Kenyan market.

The company's affiliation with PepsiCo adds a dynamic element to this merger, potentially reshaping the landscape of non-alcoholic ready-to-drink beverages in the region.

The CAK's meticulous analysis and subsequent approval underscore the regulator's commitment to maintaining a competitive business environment while safeguarding public interests.