Ugandan milk processor Lato acquires 100pc stake in Kenya's Highland Creamers

Source: Capital FM Kenya
Author: Phidel Kizito

NAIROBI, Kenya, Mar 26 - Uganda-based milk processor Lato has acquired Kenyan dairy firm Highland Creamers.

The deal was approved by the COMESA Competition Commission after it applied to acquire a 100 percent stake in the Nyamira-based milk processor last year.

The authority says that it okayed the transaction after the two parties met acquisition guidelines.

It adds that it considered submissions from the Kenyan competition authority, which certified the transaction as not raising any concerns.

"The CID determined that the merger is not likely to substantially prevent or lessen competition in the common market or a substantial part of it," read the notice signed by CID chairperson Mahmoud Momtaz.

"The CID therefore approves this transaction."

The transaction now gives Maziwa, a company incorporated in Mauritius and operating in the country, a major boost to the hurdles it has previously faced in gaining access to the Kenyan market.

In April last year, Pearl secured a $35 million (Sh5.36 billion) loan from the International Finance Corporation, pledging to invest $21 million (Sh3.22 billion) in expanding and modernizing its Ugandan powder milk production as well as purchasing a Kenyan packing business.