Three Kenyan bottling companies to merge
Three Kenyan bottling companies, Kisii Bottlers, Mount Kenya Bottlers and Rift Valley Bottlers are set to merge into a single entity named Almasi Beverages soon.
The KES4.2bn ($50m) worth merger, which is subject to shareholder and regulatory approval, was proposed to effectively tackle rising costs of each individual company.
Almasi Beverages creation will formally combine the governance and shareholding of all the three companies within four months.
A joint statement by the three bottlers stated that the ownership reorganization is a normal practice in the corporate world when shareholders seek to better capture opportunities, reported Standard Digital.
"The move will build on the existing high quality and best practices at each of the bottlers to develop a strong platform for growth in the non-alcoholic ready-to-drink beverages market in Kenya," according to the statement.
"The move will allow each of the three companies to serve their respective territories by bringing together combined resources and taking advantage of economies of scale to capture greater production and distribution efficiencies.
"Almasi Beverages Ltd will position the companies to better serve the existing market and take advantage of the emerging opportunities in line with the rapidly-changing consumer trends."
All three bottling companies are currently under bottling agreements with the Coca-Cola Company.