Tanzania Commission Approves East African Breweries Purchase of Serengeti

Tanzania’s antitrust regulator granted conditional approval of Diageo Plc-owned East African Breweries Ltd.’s acquisition of 51 percent of Serengeti Breweries Ltd., Tanzania’s second-biggest beer maker.

East African Breweries, or EABL, must sell its 20 percent stake in rival Tanzania Breweries Ltd. before the purchase is completed, the Fair Competition Commission said in a faxed statement from Dar es Salaam, the commercial capital.

Diageo owns 43 percent of EABL, which is Kenya’s second- biggest company by market value, according to Bloomberg data. EABL is targeting an initial market share of 30 percent upon buying the Tanzanian business.

EABL must also continue to promote Seregenti’s corporate identity for five years after the effective date of the merger and not close any of Seregenti’s existing plants without prior approval from the commission, it said.

“East Africa Breweries shall submit for the next five years after effective date of the merger an annual progress report of compliance with the investment strategy plan submitted during the application of the merger and an annual progress report of compliance with these conditions,” it said.

EABL welcomed the commission’s announcement and said it and Serengeti were “fully committed to working with the FCC to satisfy these conditions.”

For Related News and Information: Link to Company News: 3352939Z TZ <Equity> CN <GO> Link to Company News: EABL KN <Equity> CN <GO> Top Regional Stories: AFTO <GO>

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