KENYA – The Competition Authority of Kenya (CAK) has granted unconditional approval for Bidcoro Africa Limited to acquire the entire ownership of Suntory Beverage and Food Kenya Limited.
Suntory, known for producing popular soft drinks such as Lucozade and blackcurrant concentrate Ribena, will now operate as a subsidiary of Bidcoro, which owns the Suntop fruit juice brand.
“Premised on the above, the Authority approved the proposed acquisition of the entire issued share capital of Suntory Beverage & Food Kenya Limited by Bidcoro Africa Limited unconditionally,” said CAK.
The CAK stated that the acquisition is aimed at addressing Suntory Kenya’s underperformance by leveraging Bidcoro’s production and commercialization expertise.
“The proposed transaction will not affect the structure and concentration of the market for NARTD (non-alcoholic ready-to-drink beverages). The target will become a wholly-owned subsidiary of the acquirer and transfer all the contract manufacturing business,” the competition watchdog added.
“Therefore, the proposed transaction is unlikely to lead to a substantial lessening or prevention of competition in the market for NARTD beverages in Kenya.”
Bidcoro Africa Limited, a subsidiary of Bidco Africa, is actively involved in manufacturing, processing, marketing, and selling concentrates, soft drinks, and ice lollies, with well-known brands including Suntop, Sunquick, and Suncola.
By acquiring Suntory Kenya, Bidcoro seeks to enhance the performance of Lucozade and other Suntory brands in the Kenyan market.
The Kenyan NARTD beverages market is dominated by Coca-Cola Beverages Africa, which controls 65 percent of the market.
Other significant players include Delmonte, a subsidiary of U.S.-based NutriAsia, with a market share of 5.23 percent, and Kevian Kenya, the maker of Afia juice, holding 4.4 percent.
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