MBABANE – Mergers approved by the Eswatini Competition Commission (Compco) in the second quarter exceeded E20 million.
The approved mergers in the second include the acquisition by Mr Price Group Limited of sole control over Blue Falcon 188 Trading (Pty) Ltd, trading as Studio 88 Eswatini (Pty) Ltd (“Studio 88 Eswatini”). Compco said they considered the products of the firms and concluded that the relevant market was the retail of branded sports-lifestyle apparel, footwear, and accessories by departmental chain stores in Eswatini. They said there were no overlaps between the activities of the merging parties in the relevant market and that the proposed transaction was, as such, categorised as a phase 1 since there were no overlaps in the relevant market. “Post-merger, there will be no market accretion in the relevant market, market concentration, countervailing power, and barriers to entry will not be affected, and the transaction is unlikely to result in the substantial lessening or prevention of competition. Therefore, the proposed transaction was approved without conditions,” adds the commission.
approved acquisition
Another approved acquisition was Adia (Pty) Ltd’s acquisition of 49.36 per cent of Orchard Insurance (PTY) LTD from African Alliance Limited. The commission said there were overlaps between the activities of the merging parties in the relevant market since Adia, was already a shareholder in Orchard. Compco added that the transaction was categorised as phase 1 because the combined market share post-merger is below 15 per cent. “There will be no market share accretion since Adia and its shareholder do not own, directly or indirectly, any other insurance business in Eswatini. Post-merger, the market shares in the relevant market, market concentration, countervailing power, and barriers to entry will not be affected, hence the transaction is unlikely to result in a substantial lessening of competition in the country. Therefore, the transaction was approved without conditions,” added the commission.
The third merger and acquisition approved was the acquisition by Xerotech Proprietary Limited of the entire issued share capital in Altron Document Solutions, the business division (“ADS”) of Altron TMT Proprietary Limited. Compco said the transaction was approved without conditions.
