The Coca-Cola Company/Coca-Cola Beverages Africa Merger: Lessons for Robust Regional Competition Enforcement

• Author: Grace Nsomba
• DOI: 10.1177/0003603X211045436
• Published date: 01 December 2021
• Date: 01 December 2021

Symposium: Competition Policy and Law within the Context of the Continental Integration:

What Are the Sticking Issues for African Countries?

The Coca-Cola Company/

Coca-Cola Beverages Africa

Merger: Lessons for Robust

Regional Competition Enforcement

Grace Nsomba*

Abstract

This article uses the Coca-Cola Company/Coca-Cola Beverages Africa merger to illustrate the

important role that competition policy should continue to play in the regional and continental inte-

gration agenda. The case provides an illustrative example that the structure and reach of firms play a

pivotal role in the dynamics of value chains, as well as on the extent to which market power can

potentially be exerted within and across countries. Competitive rivalry is necessary for innovation and

lower prices, but the playing field needs to be leveled in order for entrants and smaller rivals to make

and realize investments, build capabilities, and participate effectively. Competition reforms that take a

bottom-up approach and account for the varying levels of development of countries play an integral

role in opening up markets for entrants and small rivals, which in turn allow for the objectives of the

African Continental Free Trade Area to be realized.

Keywords

competition, mergers, regulation, African Continental Free Trade Area

I. Introduction

A. Background

The shift toward globalization and an acute focus on regional integration over the past several decades

has been instrumental for firms across the world in moving to supply customers in various regions.

1

* CentreforCompetition,RegulationandEconomicDevelopment, College of Business and Economics, University of

Johannesburg, Johannesburg, South Africa

Corresponding Author:

Grace Nsomba, Centre for Competition, Regulation and Economic Development, College of Business and Economics,

University of Johannesburg, Johannesburg 2196, South Africa.

Email: gnsomba@uj.ac.za

1.Sandro Sideri, Globalization and Regional Integration, 9 EUR. J. DEV. RES. 38–82 (2007).

The Antitrust Bulletin

2021, Vol. 66(4) 544–555

ªThe Author(s) 2021

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DOI: 10.1177/0003603X211045436

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