Vivo Energy has received the green light to acquire KUKU Foods which operates US fast-food chain Kentucky Fried Chicken (KFC) in Kenya.
The Competition Authority of Kenya (CAK) approved the planned acquisition saying the deal between the two parties met the threshold for a merger since their combined revenue for the preceding year was over Sh1 billion.
CAK further noted that the business of the two parties to not overlap, with Vivo Energy being an oil importer and marketer while KUKU Foods is a restaurant franchise.
“…[T]he lines of business are complementary in nature since fast food outlets can be set up in petroleum retail outlets, providing convenience to motorists who frequent the strategically-located stations,” CAK said in a statement on Monday.
KFC has at least 24 outlets across major towns in Kenya and is the third leading fast-food restaurant in the country with a market share of 15 percent behind Innscor (16 percent) and Java (34 percent).
CAK further explained that the proposed acquisition will not have an impact on the market share of the merged entity and will unlikely to raise competition concerns.
“Additionally, the transaction is unlikely to lead to any negative public interest concerns,” added CAK.
