Sharp Daily
No Result
View All Result
Friday, July 11, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

B Commodities secures approval for Lipton Teas buyout, retains 10,000 jobs

Brian Murimi by Brian Murimi
August 12, 2024
in News
Reading Time: 2 mins read

The Competition Authority of Kenya (CAK) has given the green light to B Commodities ME (FZE) to acquire a 98.56% stake in Lipton Teas and Infusions Kenya PLC, ensuring the retention of all 10,120 employees. The approval, granted unconditionally, follows a thorough analysis of the transaction’s impact on competition and public interest in Kenya’s tea production and processing market.

The acquisition is poised to reshape the landscape of Kenya’s tea industry, where Lipton holds a significant market share of 6%. Post-merger, B Commodities, which currently controls 4.7% of the market through its Kenyan subsidiaries, including Browns Plantations Kenya Limited, will see its share grow to 10.7%.

Despite this increase, the CAK has determined that the transaction will not substantially lessen competition in the market, which is dominated by other players such as the Kenya Tea Development Agency (KTDA), Eastern Produce Kenya, and Williamson Tea.

“The transaction is unlikely to negatively impact competition in the market for production and processing of tea, nor elicit negative public interest concerns,” the Authority stated, underlining that the merger meets all legal thresholds under the Competition Act CAP 504.

RELATEDPOSTS

CAK greenlights Ramco Inc.’s sole ownership of Ramco Plexus

October 31, 2024

Access Bank wins Kenya antitrust nod for NBK deal with jobs guarantee

October 30, 2024

Kenya’s tea sector is a vital component of the national economy, producing over 450 million kilos of tea annually, with a significant portion destined for export. The industry supports approximately 5 million people directly and indirectly, with about 650,000 tea growers relying on the crop for their livelihoods. In 2022, the sector generated KES 163.3 billion in earnings, further underscoring its importance.

Public interest considerations were a critical aspect of the CAK’s analysis. The Authority emphasized that the acquisition would not lead to job losses, a significant concern in large mergers. According to the CAK, “All the 9,715 employees of Lipton Teas and 405 employees of Limuru Tea will be retained under their current terms at the time of the transaction.” This assurance of job security for the entire workforce played a pivotal role in the Authority’s decision to approve the merger.

The acquisition aligns with B Commodities’ broader strategy to expand its footprint in the agri-business sector, particularly in tea production. The company, which has a track record of revitalizing agricultural businesses, aims to leverage its expertise to enhance Lipton’s operations in Kenya.

Meanwhile, the Lipton Group has indicated that the divestiture forms part of its strategic shift from tea growing to brand management, focusing on supporting the tea industry through initiatives designed to improve yields and value chain efficiencies.

Previous Post

Kenya Aviation Union threatens strike over Adani airport deal

Next Post

110,000 passports ready for collection as immigration accelerates issuance process

Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

Related Posts

Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025

LATEST STORIES

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024