THE Competition and Tariff Commission (CTC) has approved seven mergers over the last 10 months amid plans to finalise five more by year end as firms synergise to improve efficiency, an official from the commission has said.
Report by Victoria Mtomba
In an interview recently, CTC assistant director Benjamin Chinhengo said the commission was able to approve proposed mergers within the maximum 60-day period prescribed by the law.
Chinhengo said the mergers approved include Minerva (formerly AON Zimbabwe), Meikles-Centar Mining, Redan and Puma, United Refineries with Grindrod, Sakunda Trading and Sakunda Suppliers and GlaxoSmithKline by Pharma Care Holdings. However, the other merger was yet to be announced.
“We are yet to conclude five more mergers by year end. We approved two fuel mergers, beverages, mining and pharmaceuticals and retail. The mergers were cutting all the sectors of the economy except the banking sector,” he said.
Last year, 12 mergers were approved by CTC that included Kingdom Bank and AfriAsia Bank, acquisitions of Zimbabwe Online (Private) Limited by Data Control & Systems (1996), Tractive Power by Zimplow Limited and Pelhams by TN Holdings.
CTC last year approved the acquisition of Premier Milling (Private) Limited by Croco Holdings and takeover of the Visa Point of Sale acquiring business of Standard Chartered Bank of Zimbabwe Limited by rival CBZ Bank Limited.
CTC also gave a nod to the acquisition of Haggie Rand by Zimbabwe IDC South Africa, acquisition of Matetsi Water Lodge by Elijay Investments, the takeover of TN Bank by Econet Wireless, acquisition of Renaissance Merchant Bank Limited by the National Social Security Authority and acquisition of National Foods by Innscor.
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Zimbabwe’s economy has witnessed mergers since 2009 as companies try to address economic challenges faced by the country through consolidation.
But some of the partnerships have not really produced good marriages such as the Meikles Kingdom merger.
The companies split on a bad note due to poor workmanship.
Most companies were seeking partners as a way to address liquidity problems in the economy. Since its inception in 1998 to September 2010 the commission had handled over 1 000 competition cases with 53% involving restrictive and unfair business practices and 47% being mergers and acquisitions.
