Competition and Tariff Commission approves three mergers
THE Competition and Tariff Commission (CTC) says it approved three mergers during the second half of the year 2019.
CTC said it assessed and approved the acquisition of 41,07 percent shareholding by SSCG Africa Holdings, 100 percent shareholding of Cut Rag Processors Private Limited by Gold Leaf holdings Limited and a post-merger between Intercape Ferreira Mainliner (Pvt) limited and Path Finder luxury coaches (Pvt) Limited and
The acquisition of 41,07 percent shareholding by SSCG Africa Holdings was done through the Bellfield Limited, said CTC in a recent statement.
“The acquiring company is an investment vehicle, investing in small and medium sized companies as well as listed investment mainly focusing in the sub-Saharan Africa registered in Mauritius.
“The transaction was classified as a conglomerate in nature with horizontal elements,” CTC added.
Meanwhile, the post-merger between Intercape Ferreira Mainliner (Pvt) limited and Path Finder luxury coaches (Pvt) Limited involved a joint venture of a 50-50 shareholding agreement.
“The merged entity which is operating under the name Intercape Path Finder has continued to serve Pathfinder’s Harare-Bulawayo-Victoria Falls route. The transaction was classified as a horizontal merger.”
On the part of 100 percent shareholding acquisition of Cut Rag Processors by Gold leaf holdings Limited, CTC said the vertical merger was approved on conditions the successors continue to “supply to other cigarette manufacturers with cut rag and cut rag processing services at a nondiscriminatory terms and conditions of supply that include inter-alia prices, qualify and delivery terms.
“…submit to the Commission, on an annual basis, information in relation to the quantities of cut rag sold and cut rag services rendered to cigarette manufacturers including prices and delivery terms and seek authorisation in terms of section 35 of the Competition Act (Chapter 14:28), if for any reasons the merged entity intends to deviate,” CTC said.