ZIMBABWE’S manufacturing industry accounted for the bulk of mergers and acquisitions in 2021, the Competition and Tariff Commission (CTC) said last week.
In its 2021 annual report, CTC said 33% of the mergers and acquisitions were in the manufacturing sector.
It said the mining, quarrying, agriculture, forestry, fishing and financial and insurance service sectors were also among leading industries sought-after by investors.
The report said 22 mergers and acquisition transactions were approved without conditions in 2021, while two deals were approved with conditions.
In the period under review, notable approvals were Delta’s purchase of Mutare Bottling Company from telecoms giant Econet Wireless, and the big deal in which Sotic International Limited swooped into Bindura Nickel Corporation, taking over 74,73% shareholding.
The Zimbabwe Stock Exchange-listed leisure chain, African Sun Limited acquired Dawn Properties during the period.
Mergers and acquisitions approved during the period also included the acquisition of up to 100% of issued ordinary shares in Adapt IT Holdings Limited by Volaris Group Inc, as well as the acquisition of Ascendis Vet, Ascendis Animal Health, Kyron Laboratories and Kyron Prescriptions by Sun Valley Estates.
The commission also approved the Dairibord Zimbabwe/Tavistock Estates deal and the acquisition of 100% shareholding in DSI Underground by Sandvik Holdings.
- Mboweni mentors emerging entrepreneurs, calls for integrity in business
- CTC approves six mergers
- Mvuma land dispute turns nasty
- Billionaire Strive Masiyiwa gains US$1,7 billion
Keep Reading
CTC director Ellen Ruparanganda said in 2021, the commission pursued its mandate of promoting and maintaining competition in all sectors of the economy and providing trade tariff assistance.
She said four restrictive practice cases were investigated in the school uniforms market, banking sector, central securities depository market and distribution of day-old chicks.
“Identified anti-competitive practices in the respective markets were resolved through negotiations, instituting enforcement orders and encouraging business to enter into compliance agreements,” she said in her statement accompanying the report.
To proactively maintain competition in Zimbabwe, Ruparanganda said 18 transactions were notified through Common Market for Eastern and Southern Africa Competition Commission.
She said advisory opinions were issued to parties with regards to the notifiability of six transactions, based on facts submitted in line with the Competition (Advisory Opinion) Regulation, 2021.
This assisted stakeholders to interpret and apply the Act accordingly, she said.
CTC chairperson Benedict Moyo said mergers which significantly lessened competition were prohibited.
However, he said merger transactions remained sustained and decisions or determinations were provided timeously to merging parties.
“Concurrently, delays in reviewing merger notification fee thresholds that had been impacted by currency developments affected (CTC) operations through lower revenue generated,” Moyo said.
- Follow us on Twitter @NewsDayZimbabwe
