Home Agriculture East African Dairy Industry: Ugandan Processor Pursues Kenyan Merger

East African Dairy Industry: Ugandan Processor Pursues Kenyan Merger

114
0
east african dairy industry ugandan processor pursues kenyan merger
east african dairy industry ugandan processor pursues kenyan merger
Share this News

Pearl Dairy Farms Limited, the Ugandan milk processing company known for its Lato brand, is making a strategic move to acquire a Kenyan milk company. This transaction aims to enhance the company’s competitive position in Kenya by overcoming challenges in the supply and sale of its products within the country.

The acquisition process involves Maziwa, a non-operating holding company incorporated in Mauritius, applying to the Comesa Competition Commission for a 100 percent stake in Highland Creamers & Food, a Kenyan company. This information comes from a report in The East African.

In Uganda, Maziwa oversees the collection, processing, and sale of milk and milk products through its subsidiary, Pearl Dairy Farms Limited. The acquisition of Highland Creamers & Food is expected to facilitate the distribution of Maziwa’s products in Western Kenya.

Kenya had previously granted approval in March for Uganda’s Lato milk to invest in struggling local dairy factories. This decision aimed to enhance competition in the dairy sector and was the result of discussions between Moses Kuria, the Trade and Investments Cabinet Secretary, and Ramadan Ggoobi, Uganda’s Treasury Permanent Secretary.

Pearl Dairy Farms, with its main factory located in Mbarara, is currently a major player in the dairy export market within the region. Its products are available in countries such as Egypt, Kenya, Tanzania, DRC Congo, Zambia, Ethiopia, South Sudan, and Malawi.