SEVEN mergers were approved for the past 11 months compared to 10 mergers the previous year as the economy continued to perform below expectation.
VICTORIA MTOMBA BUSINESS REPORTER
In an interview, Competition and Tariff Commission (CTC) assistant director Benjamin Chinhengo said the issue of mergers was directly linked to foreign direct investment inflows in an economy.
He said 10 mergers were approved in 2013, while 11 mergers were approved the previous year.
“Industry is not performing well and the economy is also not performing well which impacts on mergers,” he said.
The economic projections for 2014 were halved to 3,1% due to the poor performance of many sectors such as mining which has been a major driver of the economy since 2009.
The mining sector has been affected by the fall in commodity prices to a larger extent.
Mergers approved this year include Sakunda Energy Ltd and Sakunda Petroleum, Surface Investments and Wilma International, Beitbridge Juicing and Schweppes Zimbabwe Limited.
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The other mergers approved were that of Profeeds and Produtrade by Ashram, Quton Seed Co Pvt Ltd and Mahaiko ltd, Carswell Meats Cattle Group by Montana Meats Ltd by Montana Meats and Zimbabwe Midas by Genbren Services Pvt Ltd trading as Transerve.
Chinhengo said other mergers were approved by the Common Market of Eastern and Southern Africa (Comesa) Competition Commission although CTC also did an assessment on the mergers.
The Comesa Competition Commission approved six mergers that include Apollo Tyres and Cooper Tire, Telkom and BCX, Bosch and Hytec, ABC Holdings and Atlas Mara, Holcium and Lafarge and Watertech and Grohe.
Chinhengo said the Comesa Competition Commission handles mergers that involved more than one Comesa member. The said this saved time and money as the companies would have the merger approved by Comesa, while the local tariff commission receive its fees from the regional body.
He said the banking sector has been merging due to the increase in the minimum capital requirements by the central bank.
