Ribena, Lucozade Manufacturer Acquired By Bidcoro Africa Limited

• Bidcoro Africa has expanded its portfolio with the acquisition of the issued share capital of Suntory Kenya, which has been underperforming
• Bidcoro manufactures brands like Suntop, Sunquick and Suncola and is expected to improve the fortunes of Suntory without causing unfair competition
• The market for non-alcoholic beverages in Kenya is diverse, with Coca-Cola taking the lion's share of the market at 65%

Muyela Roberto is a business journalist at TUKO.co.ke with over 9 years of experience in the digital media, offering deep insights into Kenyan and global economic trends.

The Competition Authority of Kenya (CAK) has approved the acquisition of Suntory Beverage and Food Kenya Limited's issued share capital by Bidcoro Africa Limited.

Suntory Beverage, a company rooted in Japan, is known for popular drinks such as Ribena and Lucozade.

"This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for non-alcoholic ready-to-drink (NARTD) beverages, nor elicit negative public interest concern.The target will become a wholly-owned subsidiary of the acquirer and transfer all the contract manufacturing business. Therefore, the proposed transaction is unlikely to lead to a substantial lessening or prevention of competition in the market for NARTD beverages in Kenya.

"The parties indicated that the rationale of the transaction is addressing the target's underperformance by leveraging on the acquirer's production and commercialisation expertise," CAK said in a statement on Tuesday, August 20.

What does Bidcoro Africa Ltd manufacture?

Bidcoro Africa Limited manufactures, processes, markets, and sells concentrates (cordials/syrups/squashes), soft drinks, and ice lollies, with well-known brands including Suntop, Sunquick, and Suncola.

Bidcoro Africa Ltd is a partnership between Bidco Africa Ltd and CORO A/S based in Denmark.

The acquisition involves the purchase of Suntory Kenya's entire issued share capital by Bidcoro.

Kenya's NARTD beverages market is diverse, comprising both multinational corporations and local companies, each offering a variety of products to cater to different consumer preferences.

Market share of non-alcoholic beverage manufacturers in Kenya

Invesco Assurance placed under management

In another development, the Insurance Regulatory Authority (IRA) announced that Invesco Assurance Company Ltd has been placed under statutory management and is barred from entering new insurance agreements.

The announcement hit policyholders hard and shocked them after they were advised to seek alternative coverage from other firms. Invesco found itself in a financial storm after accumulating high numbers of unpaid claims.