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Oliver Kazunga Business Reporter
THE Competition and Tariff Commission (CTC) says it has approved one merger between January and June this year compared to three during the same period last year. Responding to written questions from Business Chronicle, CTC director Mr Alexander Kububa said the transaction involved two foreign companies in the pharmaceuticals sector.
“The commission has approved only one merger transaction which involved acquisition of GlaxoSmithKline’s Over the Counter (OTC) Products by Aspen Pharmacare Holdings.
“Both companies are resident outside the country but do trade their products in Zimbabwe and as such they notified the transaction,” he said.
Mr Kububa said the value of the merger is equated to the amount of revenue that was attainable in Zimbabwe for the two companies, estimated at $2.2 million.
“This year’s mergers and acquisitions are fewer relative to last year. Last year by June the commission approved three mergers whilst this year it is only one,” he said.
An economic commentator Mr Trust Chikohora attributed the decline in mergers and acquisitions this year to economic uncertainty associated with the general elections to be held at the end of the month.
“The decline in the number of mergers and acquisitions that the CTC has approved could be due to the economic uncertainty associated with the election talk.
“Most people would want to see how the economy will come out after the elections. Perhaps after the elections there will be more mergers and acquisitions as investors will be more certain of which direction the economy will take,” he said.
Last year, the commission approved 12 mergers including acquisitions.
The mergers approved last year included the acquisition of Kingdom Bank by Mauritius-based financial institution AfriAsia Bank as well as the acquisition of Renaissance Merchant Bank by the National Social Security Authority.
Online Reporter
Bongani Ndlovu