The competition watchdog has ordered Coca-Cola Sabco East Africa
(CCBA) to retain 1,739 permanent employees, representing about 99
percent of staff, in its merged entity with Almasi Beverages Limited.
While
approving acquisition of the firm from Centum, the Competition
Authority of Kenya (CAK) directed CCBA to retain the workers upon
completion of the deal in a raft of conditions that will also protect
Small and Medium Enterprises (SMEs).
“The
merged entity shall for a three (3) year period following completion of
the proposed transaction retain 1,749) employees of the total 1,760
permanent employees,” CAK said.
“The merged entity
shall reserve the lower deck, or not less than 20 percent of the total
storage space of the coolers lent to SMEs for products of competitors
except the brands of the Coca-Cola Company’s three (3) largest global
non-alcoholic ready-to-drink competitors.”
Under the
deal set to be completed next year, Centum will sell its entire 53.9
percent stake in Almasi and 27.6 percent of issued shares in Nairobi
Bottlers Limited (NBL) for Sh19.5 billion.
Centum had in June said that it will relinquish its shareholding
in Almasi to raise funds for payment of Sh7.5 billion
dollar-denominated loans.
The acquisition boosts Coca-
Cola’s efforts to increase its customer base in the local non-alcoholic
drinks market, up from the current 70 per cent.
CCBA
will continue to operate the current bottling plants of the merged
entity in Nyeri, Eldoret, Nairobi, Molo and Kisumu for at least three
years after the acquisition.
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