Deal previously raised monopoly concerns
Brookside Dairy has been given the green light to fully acquire Buzeki Dairy, a move that now consolidates the business that is associated with the Kenyatta family as the leading milk processor in the East African region.
In a deal estimated to be about Sh1.2 billion, Brookside now consolidates its market share lead of about 44 per cent, although the buyout has previously raised concerns of Brookside becoming a monopoly that may leave small scale dairy farmers hurt.
This move comes even as the firm enters new markets in other African countries like Ethiopia, becoming the first Kenyan firm to do so.
“The Competition Authority authorises the proposed acquisition of all business and assets of Buzeki Dairy Limited by Brookside Dairy Limited,” the Authority’s director general Wang’ombe Kariuki, said in a Kenya Gazette notice on Friday.
The processor had previously acquired other local dairy brands including Ilara, Tuzo and Delamare.
Last year, the processor began the construction of a Sh3 billion milk powder plant, anticipated to double the capacity of milk processed at the plant to 2.4 million litres daily.