Tanzanian Antitrust Agency Threatens Diageo Unit Over Merger
Tanzania’s Fair Competition Commission threatened to withdraw its approval of East African Breweries’ 2010 merger with Serengeti Breweries, saying the beer maker had breached conditions of the amalgamation.
The antitrust agency approved the deal after Nairobi, Kenya-based EABL said it agreed to ensure that Serengeti “achieves potential growth that is well beyond the level it was able to achieve previously,” the FCC said in a statement published in the Dar es Salaam-based Guardian newspaper on Tuesday. Serengeti’s performance has failed to meet expectations, it said.
“The commission has issued a notice of an intention to revoke its own decision with respect to the merger against EABL,” it said.
East African Breweries is the region’s biggest brewer. Diageo, the London-based maker of owns Guinness stout and Johnnie Walker whisky, owns 50.03 per cent of the company, according to Bloomberg data.
Bloomberg News, edited by ESM