Uganda’s Lato Milk Processor Acquires Kisii Firm

Summary:

• Uganda’s milk processing firm, behind the Lato brand, has gained approval to acquire a Kenyan company, addressing supply issues in Kenya. The Comesa Competition Commission approved the acquisition by Maziwa, enabling it to take over Highland Creamers & Food Limited. This move follows Kenya’s earlier invitation for the company to invest in local dairy ventures.

The Ugandan milk processing company known for its Lato brand has been granted approval to acquire a Kenyan milk company, paving the way for addressing challenges hindering the supply and sale of its products in Kenya.

According to a notice from the Comesa Competition Commission dated March 11, the transaction has been sanctioned. This allows Maziwa, the non-operating holding company registered in Mauritius, to secure a 100 percent stake in Highland Creamers & Food Limited, a Kisii-based company operating under the Farmily Milk brand since 2015.

“The CID (Committee Responsible for Initial Determinations) has determined that the merger is unlikely to substantially impede or diminish competition in the Common Market or a significant portion thereof, nor will it be against the public interest,” stated the Commission.

In Uganda, Maziwa operates through its subsidiary Pearl Dairy Farms Limited, involved in milk collection, processing, and sales. The company has relied on the Kisii firm to facilitate product sales in Western Kenya.

The competition authority highlighted that Pearl is not a major purchaser and emphasized the presence of other market players ensuring ongoing competition.

The Commission also took into account input from the national competition authorities of Egypt, Kenya, and Malawi, none of which raised concerns regarding the transaction.

“Additionally, it was apparent from the parties’ submissions and the Competition Authority of Kenya that the market was diverse, with numerous competitors expected to maintain competitive pressure on the merged entity,” added the Commission.

This development follows Kenya’s decision a year ago to welcome the company’s investment in local dairy facilities. Pearl had entered into an agreement with the state-owned financier Kenya Development Corporation to jointly invest in domestic dairy ventures.