Coca-Cola ordered to retain workers after Almasi deal

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.