Sri Lanka’s Browns Investments acquires Lipton’s Kenya, Rwanda operations
The Morning: Sri Lanka’s Browns Investments has successfully completed the acquisition of Lipton’s tea companies in Kenya and Rwanda.
The acquisition was executed through Browns’ wholly-owned subsidiary, B Commodities ME FZE, incorporated in the United Arab Emirates, according to a filing with the stock exchange.
However, the acquisition of Lipton Teas and Infusions Tanzania Limited is still pending. The completion of this transaction is awaiting approval from the Fair Competition Commission of Tanzania.
The company had previously announced in May that it had entered into a sales and purchase agreement (SPA) with Ekaterra Holdco UK Limited and Netherlands-based Ekaterra Group Holdings BV and Ekaterra Group Holdings 2 BV to acquire control of these African firms.
OSL take:
Many Sri Lankan businesses are engaged in expansion programmes locally and internationally. It is a clear indication of the overall resilience, strength and growth of Sri Lanka’s economy. Local authorities, while engaging in promotional campaigns overseas, have also introduced incentive schemes for foreign businesses/investors looking at opportunities in Sri Lanka. With the country working towards becoming a regional hub, supported by Sri Lanka’s geographical positioning in the Indian Ocean and strong trade ties there’s an expansion in the business/investment opportunities presented to foreign businesses/investors. Given the business conducive environment in Sri Lanka and its growth and business potential, foreign businesses/investors could confidently explore the expanding business/investment opportunities in the country. Sri Lanka’s strong private sector also presents opportunities for foreign businesses/investors to look at forming partnerships or joint ventures with local businesses in order to expand operations locally and internationally.