CTC probes mergers

By The NewsDay | Sep. 28, 2012 | 2 Min read

The Competition and Tariff Commission (CTC) has begun investigations on seven mergers and acquisitions (M&A). It is also probing Econet’s recent investment into TN Bank.

Report by Byron Jele Business Reporter CTC director Alexander Kububa told NewsDay that the examination of the transactions was at an advanced stage. Consultations with stakeholders were underway before completing analysis of the findings.

Some of the M&As under probe, according to Kububa, include the proposed acquisition of Haggie Rand Zimbabwe by Industrial Development Corporation of South Africa, the takeover of Tractive Power Holdings by Zimplow Limited and a proposed partnership between CBZ Bank and Standard Chartered Bank on sharing VISA point-of-sale.

Kububa said the challenges confronting industry from a competition and trade policy point of view included the abuse of dominant position, or monopolisation, engaging in anti-competitive practices of both exploitative and exclusionary nature, such as excessive pricing, predatory pricing and discriminatory treatment.

He added that some firms were engaged in collusive and cartel-like behaviour between competing undertakings to fix prices, share markets and rig tender bids.

CTC, Kububa added, will also soon be holding stakeholder hearings into its full-scale investigation into allegations of collusive and cartel-like behaviour in the bread making industry.

“The commission is doing all it can, within its powers under the Competition Act (Chapter 14:28) to level the playing field for effective competition, which is crucial and imperative for industry and economic efficiency,” he said.

Official figures show that the commission has to date considered four transactions involving mergers and acquisitions.