The famous Kentucky Fried Chicken (KFC) fast food restaurant is set to be acquired by Vivo Energy after the Competition Authority of Kenya (CAK) approved the proposal.
In a statement released on Monday, CAK noted that the two companies have been allowed to merge since their transactions met the set threshold.
The authority said the two companies have a combined turn over of over Sh1 billion in the preceding year.
More so, CAK allowed the proposed acquisition since the two business ventures do not overlap.
“…the lines of business are complimentary in nature since fast food outlets can be set up in petroleum retail outlets, providing convenience to motorists who frequent the strategically-located stations,” read the statement as quoted by Citizen Digital.
The famous KUKU Foods, which has been operating under the management of American fast food chain KFC will now be under Vivo Energy.
KFC has more than 24 food outlets across major towns in the country, and is the third leading fast food chain after Java and Innscor.
The merger of the two companies is likely to raise their competition in the restaurant franchise business.
CAK pointed out that this will not have any negative effects on their customers.
“Additionally, the transaction is unlikely to lead to any negative public interest concerns,” the statement read in part.