10 mergers, acquisitions approved: Move saves firms from collapse

firms

Business Reporter
THE Competition and Tariff Commission (CTC) has approved 10 mergers and acquisitions in the first six months of 2017 supporting the survival of local companies.

Most of the transactions approved by the CTC during the period under review involve local entities and their foreign counterparts in sectors such as mining, manufacturing and information communication technology.

The mergers and acquisitions approved for example include Edcon Group (South Africa) where Parentco acquired 100 percent in Edcon Acquisition Proprietary Limited. The transaction was classified as a conglomerate as it involved the merging of firms that operate in different markets.

During the period under review, CTC also approved the acquisition of Global Anaesthetic Portfolio of AstraZeneca AB and AstraZeneca UK by Aspen Global.

“Aspen Global is incorporated in Mauritius and is a wholly owned subsidiary of Aspen Pharmacare Holdings Limited of South Africa, which is a multinational pharmaceutical company in Africa.

“AstraZeneca incorporated in Sweden and AstraZeneca UK, incorporated in the United Kingdom are owned by AstraZeneca PLC,” said the Commission.

The transaction was classified as a horizontal merger as the merging parties were in the same business. The CTC also said in the first six months of the year, it approved a merger between SacOil Holdings Limited and Phembani Oil Proprietary Limited.

Phembani Oil Proprietary Limited derives revenue from Zimbabwe through its subsidiary Afric Oil. SacOil is an independent African Oil and gas exploration firm based in South Africa. It invests in oil and gas assets and activities in the African continent.

During the period under review, CTC also approved another acquisition in the pharmaceutical sector involving Datlabs and Langdesh Investments, where the latter has acquired 100 percent shareholding in the former.

Langdesh, which owns 100 percent shareholding in Zimbabwe’s Pharmaceuticals Limited, is involved in the manufacture and distribution of pharmaceutical products.

Datlabs is a manufacturer of a wide range of health care pharmaceutical and consumer products.

CTC has also approved the acquisition of Palatial Gold Investments by RioGold, a subsidiary of RioZim.

Palatial Gold is a wholly-owned subsidiary of Falcon Gold Zimbabwe Limited and is into gold mining. The transaction involved Palatial Gold’s disposal of its Dalny Mine Complex.

Last year, CTC received 28 merger notifications.

During the first half of 2016, the commission approved 10 mergers. Notable transactions that were approved last year was the acquisitions of a significant stake in Pure Oil Investments by National Foods Limited.

Pure Oil is a joint venture between Export Trading Group Tanzania and Parrogate Zimbabwe Private Limited, which has operations in Zambia, Malawi and Zimbabwe for cotton contract farming and oil seed processing.

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