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Mergers come under scrutiny

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The proposed increase of shareholding in TM Supermarkets by South African retail giant Pick ’n’ Pay and the acquisition of a 75% stake in Lynton-Edwards Stockbrokers by Rencap Zimbabwe MLE Holdings are being scrutinised.

Competition and Tariff Commission (CTC) assistant director Benjamin Chinhengo recently said the commission was still considering South Africa retail giant Pick ‘n’ Pay’s bid to increase its stake in TM supermarkets to 49%.

Meikles and Pick ’n’ Pay early this year concluded negotiations for the retail giant to purchase a further 24% stake in TM supermakets.

“It is hereby notified in terms of section 28 (2) of the Competition Act that the Competition and Tariff Commission after receiving a merger notification in terms of section 34 of the Act, regarding the proposed increase in shareholding from by Pick ’n’ Pay Limited 25% to 49% in TM Supermarkets Limited, intends to investigate the transaction in terms of section 28.”

Meikles Limited finance director Onias Makamba told NewsDay a forthnight ago that delays in regulatory approval from CTC was stalling its plans to access $13 million from Pick ’n’ Pay.

Makamba said the company has received regulatory approval from the Reserve Bank of Zimbabwe and the Ministry of Youth Development Indigenisation and Empowerment, to increase its stake and pave way for the recapitalisation of TM Supermarkets.

Turning to the Lynton-Edwards and Rencap Zimbabwe deal, CTC said in accordance with the provisions of the Act it will, “examine among other things whether the merger is likely to substantially lessen competition in Zimbabwe or any part of Zimbabwe or is likely to result in a monopoly situation contrary to public interest”.

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