The COMESA Competition Commission has initiated an inquiry into a proposed merger involving Salvo Grima Kenya Ltd and Noble Outlook Limited, marking the latest scrutiny of cross-border consolidation in the region's fast-moving consumer goods and tobacco distribution sectors.
- •Salvo Grima Kenya has notified the Commission of its intention to purchase 22,500 ordinary shares amounting to 75% of Noble Outlook's issued share capital.
- •Noble Outlook is a specialized distributor of tobacco products with long-standing relationships in the Kenyan market, and according to the notice, its founder- who remains the majority shareholder- is retiring and seeking to divest most of his stake.
- •From a competition standpoint, the Commission's inquiry will focus on whether combining the two entities could diminish market contestability in the distribution of tobacco and related FMCG products, particularly given Salvo Grima's rapidly expanding regional presence.
Salvo Grima Kenya is part of Salvo Grima Group, a Malta-registered conglomerate with distribution operations across multiple African markets, including Rwanda, Libya, and more recently Uganda. The Group has steadily expanded its footprint in the region through logistics investments, wholesale FMCG distribution, and tobacco product supply chains.
The transaction would provide Noble Outlook with fresh capital to support growth while enabling Salvo Grima to consolidate its East African operations into a more integrated distribution network.
If approved, the deal could reposition Kenya within Salvo Grima’s regional logistics architecture, aligning with the Group’s strategy of building leaner, cross-market wholesale channels. However, regulatory reviews in COMESA tend to weigh such efficiencies against potential entry barriers, especially in industries where product distribution networks strongly influence pricing dynamics and market access.
