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Tinashe Makichi Business Reporter
THE Competition and Tariff Commission has approved the proposed acquisition of 100 percent shareholding in Carnaud Metalbox Ltd by Nampak SA through Hunyani Holdings.
The CTC said NamPak SA presented a report on the proposed acquisition and did not see any sign of a competition breach hence unanimously agreed to approve the transaction.
NamPak, a Johannesburg Stock Exchange listed company, is a common shareholder in Carnaud Metalbox and Hunyani. The proposed acquisition is meant to consolidate NamPak interests in Zimbabwe and bring them under one holding company.
“Other than change in the internal structures of the three players the transaction is not going to result in changes in the market structure in the relevant market,” said the commission.
CTC assistant director (Competition) Mr Benjamin Chinhengo confirmed the development.
“The board sat last week and approved the Nampak transaction because it did not see any breach of competition,” said Mr Chinhengo.
He said the CTC also approved the Montana Meats proposed acquisition of a controlling stake in Masvingo based cattle dealer, Carswell Meats Cattle Group companies. Montana Meats will now acquire 65 percent shareholding of Carswell Meats Cattle Group Companies.
Both companies have not been trading profitably due to lower consumer purchasing power, rising operational costs and increased competition from both the informal sector and new players in the market. The merger is expected to enhance the use of facilities, lower operational costs and improve profitability in the short to medium term.
Formed in 1997, Montana Meats initially operated as a subsidiary of a live cattle auctioning company, Zimstock Sales. Through Zimstock Sales, Montana Meats was responsible for sale of about a quarter of the cattle auctioned in the country at that time.
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