SABMiller already owns Nile Breweries Ltd, the second biggest brewer in the country after Uganda Breweries Ltd, and its Africa head told Reuters on Thursday it was keen expand its soft drinks bottling operations.
Onapito Ekomoloit, corporate affairs manger at Nile Breweries, told Reuters the acquisition of Rwenzori Beverages was expected to strengthen their market position, especially in the non-alcoholic beverages market.
'Rwenzori commands Uganda's bottled water market, and doubtless this acquisition is certain to entrench SABMiller's position in Uganda,' he said.
The company produces 1.2 million hectolitres per year and exports its bottled water to eastern Democratic Republic of Congo, southern Sudan and Rwanda.
He declined to disclose the amount the company paid for the acquisition. A local newspaper, The New Vision, quoted a source estimating it at $18 million.
The company is to be run as an independent unit under the name Rwenzori Bottling Company Limited, alongside Nile Breweries.
Competition in Uganda's fast-growing water market has intensified, with the traditional soft drinks companies Coca-Cola and Crown Beverages Ltd, which produces Pepsi , both starting their own water brands.
Uganda's economy survived the global slowdown relatively unscathed, and investment into the country is expected to nearly double to $3 billion this year thanks to growing foreign interest in its oil sector, which is expected to start production later in 2010.
(Reporting by Elias Biryabarema; editing by David Clarke/Will Waterman) (For more Reuters Africa coverage and to have your say on the top issues, visit; http://af.reuters.com/) Keywords: SABMILLER UGANDA/ (Email: nairobi.newsroom@reuters.com; tel: +254 20 222 4717) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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