adminOliver Kazunga, Senior Business Reporter
THE Competition and Tariff Commission (CTC) approved five company mergers in the first quarter of 2017.
In a notice the commission announced the acquisition of Edcon Proprietary by Parentco, Msasa Bricks by Beta Tile and Brandcorp Holdings Proprietary Limited by Bidvest Group. Aspen Global Incorporated also acquired Global Anaesthetic Portfolio of AstraZeneca while Palatial Gold Investments was acquired by RioGold.
CTC indicated that two of the five transactions approved during the period under review were classified as conglomerate in nature while the other three were treated as horizontal mergers.
“The transaction (Edcon Proprietary by Parentco) was classified as a conglomerate in nature as it involved firms that operate in different markets.
“Beta Tiles, a subsidiary of Beta Holdings is involved in the production and distribution of concrete roof tiles in Zimbabwe.
“Msasa Bricks is a company incorporated in Zimbabwe and produces and distributes concrete products such as bricks, blocks and pavers.
“It also retails ceramic tiles, cement, toilet cisterns and wash basins. The transaction was classified as a conglomerate merger,” said the commission.
The transaction between Edcon and Parentco involved financial restructuring in Edcon Group (South Africa) where Parentco acquired 100 percent shares in Edcon Acquisition Proprietary Limited.
Edcon is in the clothing industry while Parentco are fiduciary investors.
The CTC did not indicate how much all the five transactions were worth.
Since 2009, Zimbabwe’s economy has experienced many mergers and acquisitions as companies seek to consolidate their balance sheets in order to survive the prevailing economic climate.
On horizontal mergers, the CTC said: “Bidvest is an international services, trading and distribution company based in South Africa and supplies self-adhesive tape in the Zimbabwean market through its subsidiary, Bidvest Buffalo Tapes Proprietary Limited.
“Brandcorp has six business divisions that supply and distribute branded and niche consumer and industrial products.
“It generates revenue in Zimbabwe through the distribution of tools and hardware, hoisting and lifting equipment, and equipment to various sectors including mining and engineering. Aspen Global I incorporated in Mauritius and is a wholly owned subsidiary of Aspen Pharmacare Holdings Limited of South Africa, which is an international and the largest pharmaceutical company in Africa.
“On the other hand, AstraZeneca AB is incorporated in Sweden and AstraZeneca UK is incorporated in the United Kingdom are owned by AstraZeneca PLC. Both merging parties are amongst international companies supplying the Zimbabwean market with pharmaceutical products,” said CTC.
On Palatial Gold Investments, it said the company was a wholly owned subsidiary of Falcon Gold Zimbabwe Limited.
“Palatial Gold owns the Dalny Mine Complex consisting of a gold processing plant, equipment, mining claims, mining infrastructure, a mine compound and other assets whilst RioGold is a wholly owned subsidiary of RioZim Limited,” said CTC.
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