Ambo Mineral Water Plc and the East African Bottling Company have denied the claims that were brought against them concerning an unregistered merger between the two companies.
The companies were taken to the tribunal in June 2017 by the Ethiopian Trade Practices & Consumer Protection Authority. In an oral litigation held on July 25, 2017, the co-defendant companies asserted that the Authority’s allegations are not backed by the appropriate evidence.
The Authority claimed in its suit the companies concluded a merger in January 2017, but did not inform the Authority. The Authority also claimed the merger put a negative impact on the economy and harmed trade competition by putting beverage distributors out of work.
The claim also asserted that the two companies exchanged letters of the merger, and announced the merger during a meeting held at the Economic Commission for Africa (ECA) hall.
The companies argued the meeting was not about a merger and that there are no shares, properties or securities shared between them. East African Bottling also raised a preliminary objection claiming the Authority has no cause of action.
The tribunal thus adjourned the case to August 23, 2017, to pass a ruling on the defendants’ preliminary objection.
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