- The Sh1 billion deal brings to 52.43 per cent foreign firm’s ownership of the wines and other alcoholic beverages marketer.
The Competition Authority of Kenya (CAK) has approved the buyout of Centum’s #ticker:ICDC entire 26.43 per cent stake in State-owned Kenya Wine Agencies Ltd (Kwal) by South Africa distiller, Distell.
The deal, estimated at Sh1 billion, brings to 52.43 per cent foreign firm’s ownership of the wines and other alcoholic beverages marketer.
CAK, through a gazette notice last Friday, gave the go-ahead for the transaction indicating that Distell’s higher stake in Kwal will not negatively affect competition.
“…it is notified that the Competition Authority of Kenya has approved the proposed acquisition of an additional 26 per cent shareholding in Kwal Holdings East Africa Limited by Distell International Holdings Limited,” said CAK director-general Wang’ombe Kariuki.
Distell, the owner of Amarula and Viceroy brands, announced in April it had acquired Centum’s entire 26.43 per cent stake in Kwal for an unknown value.
“Spirits have been the fastest growing segment of Kenya’s alcoholic beverage industry and growth is anticipated to remain robust,” said Donovan Hegland, managing director at Distell Africa.