Coca-Cola bottling plants in Kenyas Nyeri town, Rift Valley and the city of Kisii have entered into a merger deal that will see the total value of all three businesses rise by 26 per cent
The three bottlers have formed Almasi Beverages Limited, who will be expected to command a value of US$65.9mn.
The completion of the merger has paved the way for a new board to be announced. The factories will soon launch the search for new executives and directors following the merger, which was originally confirmed in August 2012.
A joint statement from the plants said the new single entity will be expected to save operation costs and produce a larger market share in the soft drinks market. New products were also likely to hit the shelves.
A Business Daily report said that investment firm Centum has emerged as the main beneficiary with the firm having had sizeable stakes in the bottlers previously. Its 40 per cent stake in the new single entity will give the company clout in decisions on directors and executives.
The report also confirmed that no plants would be closed as a result of the merger, with concerns having arisen from the Nairobi Bottlers experience seven years ago, when three factories were shut down and jobs lost.
