Bidcoro Africa Limited, a company associated with Bidco, has acquired the entire issued shared capital of the makers of Ribena and Lucozade brands (Suntory Beverage and Food Kenya) in a deal approved by the Competition Authority of Kenya.
Bidcoro Africa Limited (Bidcoro) is a company incorporated in Kenya. It is involved in the manufacturing, processing, marketing and sale of concentrates (cordials/syrups/squashes), soft drinks, and ice lollies. Some of Bidcoro’s brands are; Suntop, Sunquick, Suncola.
According to the Competition Authority of Kenya, 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.
The market share of Suntory Beverage and Food Kenya is estimated at less than 2 per cent in an industry largely controlled by Cocal-Cola Beverages Africa commanding 65 per cent. Other players such as Delmonte Kenya, Kevian Kenya, Excel and Predator control 5.23, 4.4, 2,87 and 2.2 per cent respectively.
Red Bull, Highlands, Pepsico and others market share is composed of 1.7, 1.7,1.4,1 and 12.67 per cent respectively. Bidcoro and Bidco Africa limited controls 1 per cent market share.
CAK noted that as per the parties submissions, the transaction will not elicit negative public interest concerns. Specifically, there will be no employment loss. Suntory Kenya employees will be retained on comparable terms and conditions prior to the transaction.
“ 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.
