Rivals get space in EABL fridges in Diageo stake sale deal
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Employees inspect beer bottles on a conveyor belt along a production line of the East African Breweries' microbrewery in Ruaraka, Nairobi, Kenya, January 26, 2024.
The merged entity will be required to allow rival brands 20 percent of the space in the refrigerators it provides to retail outlets.
Currently, EABL prohibits storage of rival brands in its fridges.
The parties have been also been asked to set aside enough funds to cover future liabilities, which include potential awards in ongoing court cases against EABL.
The Competition Authority of Kenya (CAK) has granted conditional approval to Diageo’s sale of a 65 percent stake in EABL to Japanese beverage maker Asahi Group, clearing the last regulatory hurdle for the transaction that has also been held up by court cases.
The CAK said that the merged entity will be required to allow rival brands 20 percent of the space in the refrigerators it provides to retail outlets as a condition for the approval. Currently, EABL prohibits storage of rival brands in its fridges.
