TRYNESS MBALE, Lusaka
THE Competition and Consumer Protection Commission (CCPC) has approved the merger of three firms in the food industry.
In October last year, CCPC received an application for the authorisation of a merger involving the acquisition by Amatheon Food Gmbh (Amatheon Food) of 51 percent shares in Real Meat Company Limited (Real Meat) and the acquisition of 100 percent in More Beef Limited.
The board of commissioners has since deliberated on the case and authorised the merger based on the factors that it would not lead to substantial lessening of competition in the relevant markets, but that it would enable the company to become vertically integrated and improve its efficiency.
â€œHaving considered the facts of the transaction, the board approved the merger on condition that the parties shall continue to uphold the existing agreements that Real Meat and More Beef had entered into with local suppliers for at least one year from the date of the boardâ€™s decision,â€ according to the CCPC newsletter publication for the last quarter of last year and availed to the Daily Mail recently.
CCPC notes that the parties will ensure no existing jobs, on both the operation and administrative side, are lost by virtue of the transaction for at least one year from the date of the boardâ€™s decision.
It observed that the transaction would not lead to the creation of a dominant position in the relevant markets and there were no any public interest concerns.
Meanwhile, Mount Meru Petroleum Zambia Limited submitted an application on the proposed takeover of Petrotech Oil Corporation Limited assets.
The board has approved the transaction on condition that Mount Meru will maintain the existing contracts and legal obligations as the ownership of the assets of Petrotech acquired by Mount Meru for a period of one year from the date of the boardâ€™s decision
This follows an application sent to CCPC last year.
The transaction involving Mount Meru and Petrotech would not lead to the substantial lessening of competition in the relevant market as there existed a number of players in the market that were able to offer alternative products and sufficient competitive restraint.
TRYNESS MBALE, Lusaka