Mauritian company Phoenix Beverages buys stake in Kenya beverage firm

AFRICAN BUSINESS AND ECONOMYMarch 9, 2024 at 8:32 PM UTC

TLDR

Phoenix Beverages Limited received clearance to acquire a 28.15 percent stake in Africa Originals Limited, which owns Savannah Brands Company
Competition Authority of Kenya approved the transaction without disclosing the specific value
The approval is based on the determination that the acquisition is unlikely to harm competition in the market for alcoholic and non-alcoholic beverages.

Phoenix Beverages Limited (PBL), a Mauritius-incorporated firm, has received clearance to acquire a 28.15% stake in a local company in Kenya specializing in the production of alcoholic and non-alcoholic beverages.

The Competition Authority of Kenya (CAK) approved PBL to acquire the minority stake in Africa Originals Limited, an England and Wales-incorporated company that owns Savannah Brands Company. The specific value of the transaction has not been disclosed.

According to the CAK, this approval is based on the determination that the transaction is unlikely to hurt competition within the market for the manufacture, processing, distribution, and sale of alcoholic ciders, alcoholic spirits, and non-alcoholic ready-to-drink beverages.

Key Takeaways

Upon the completion of the acquisition, PBL will gain minority controlling rights, which encompass aspects such as budgets, annual business plans, and the appointment of senior executives within Savannah Brands. Cross-border deals like this are beneficial for Africa's business landscape, as they foster collaboration, promote investment, and contribute to economic growth and development across the continent. Such transactions often bring together the expertise, resources, and networks of companies from different regions, leading to enhanced competitiveness and innovation within the African business ecosystem.

Phoenix Beverages Limited

Acquisition

Mauritius

Africa Originals Limited

Kenya