The EABL must sell its 20% stake in rival Tanzania Breweries LTD before the purchase is completed.
Diageo owns 43% of EABL, Kenya’s 2nd- biggest company by market value (Bloomberg data). EABL is targeting an initial market share of 30% upon buying the Tanzanian business.
EABL must also continue to promote Seregenti’s corporate identity for five years after the effective date of the merger and not close any of Seregenti’s existing plants without prior approval from the commission.
“East Africa Breweries shall submit for the next five years after effective date of the merger an annual progress report of compliance with the investment strategy plan submitted during the application of the merger and an annual progress report of compliance with these conditions,” a faxed report from the Commission said.
EABL welcomed the commission’s announcement and said it and Serengeti were “fully committed to working with the FCC to satisfy these conditions.”
Serengeti Breweries LTD is Tanzania’s second-biggest beer maker.
credit: Wilfred Mwakalosi/Bloomberg