Nairobi, Aug. 13 -- A final decision on the Diageo-Asahi transaction remains in limbo.

Two critical developments unfolded last week. Appearing before the National Assembly Committee on Finance and National Planning, Competition Authority of Kenya (CAK) CEO David Kimei publicly disclosed for the first time conditions Asahi and Diageo must meet before securing deal approval.

First, the regulator wants the companies to establish a dedicated financial reserve-equivalent to at least four percent of the transaction value-ring-fenced to cover third-party claims, regulatory actions, and historical disputes. Second, the merged entity must allocate 20 percent of its retail refrigerator space to rival products in bars, supermarkets, petrol station...