Distribution of bottled drinking water to get stiffer competition

The local manufacturing and distribution of bottled drinking water are likely to experience stiffer competition after the Competition Authority of Kenya approved the full acquisition of Aquamist Limited by Aquapani Limited, which is a subsidiary of the Menengai Group Limited.

The transaction is expected to increase production capacity.

Aquapani Limited is a wholly-owned subsidiary of the Menengai Group Limited while Aquamist Limited is involved in the manufacture and distribution of bottled drinking water, juices and other non-alcoholic drinks.

The Competition Authority of Kenya says “the acquisition is being done jointly with that of Aquaplast Limited.

However, the Authority’s view is that the transaction is unlikely to raise any vertical concerns since Aquaplast has only one customer (Aquamist), and the production capacity is currently being underutilized. 

Field surveys conducted by the Competition Authority of Kenya determined that there are over 650 registered water bottlers in Kenya.

The estimated market share of Aquamist in Nairobi is 9% and approximately 4% nationally and that for Maisha Drinking Water managed by Ketepa is 8%.

In addition, the Authority has also approved the acquisition of 80% of the issued share capital of iWayAfrica Kenya Limited by Echotel International Proprietary Limited.

Echotel resells Internet connectivity, Virtual Private Network and online security services as well as providing services via a multi-carrier converged network. On the other hand, iWayAfrica Kenya provides fixed line services as well as a range of ICT services including wireless internet connectivity services, data storage, support and maintenance services.

CAK says the merged entity will have a market share of 1.8% and is therefore unlikely to raise competition concerns.

Further Hertiour Limited has acquired 100% of the shares in Abercrombie & Kent Group of Companies.

Despite being newly incorporated and lacking presence in Kenya, Heritour will be leveraging on, A&K’s services that are throughout Kenya offering tourist accommodation in Maasai Mara.

Abercrombie & Kent Group of Companies is among top 36 registered tour operators that post annual gross earnings of over 120 million shillings.

  

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