Ambo Mineral Water PLC and East African Bottling Company, 2 beverage producers in Ethiopia, have denied the allegations of unregistered merger. It was in June 2017 that a pleading was filed at the Ethiopian Trade Practices & Consumer Protection Authority’s tribunal against the 2 companies.

During a hearing held on July 25, 2017, both defendants asserted that the Authority’s allegations are not backed by the appropriate evidence.

The pleading against the 2 companies stipulates that Ambo and East African Bottling merged in January 2017 without notifying the Authority. The pleading further read that the merger had put negative impact on the economy and harmed trade competition by putting beverage distributors out of work.

The Authority’s claim further noted that the 2 companies had exchanged letters of the merger and mae an announcement of the merger at a meeting held at the United Nation’s Economic Commission for Africa (UNECA) meeting hall.

The defendants on their parts explained the meeting was not about a merger and that there are shares, properties or securities shared between themselves.

In addition to this, East Africa Bottling raised preliminary objection stating that the Authority does not have any cause of action.

The tribunal adjourned the hearing to August 23, 2017 to give a decision on the preliminary objection East African Bottling raised.

Source: Fortune