We won’t acquire additional shares in First Mutual Holdings – CBZ Holdings

Senior Business Writer

CBZ Holdings has informed its shareholders that it will not move forward with acquiring a complementary business following a ruling by the Competitions and Tariff Commission (CTC) against its planned acquisition of additional shares in First Mutual Holdings (FML) via a mandatory offer.

On 9 December 2024, the CTC determined that CBZH must retain its 31.22 percent stake in FML, consistent with the commission’s initial approval.

In a cautionary statement, the financial services group said CTC set various conditions for approval of the transaction and having considered the nature of the conditions, the Directors have decided that the Company will no longer proceed with the transaction.

“Further to previous cautionary Statements issued in respect of a potential acquisition of a complementary business in the financial sector, the last of which was issued on 4 November 2024, the Directors of CBZ Holdings Limited wish to advise all Shareholders and the investing public that the Company received a decision from the Competition and Tariff Commission (CTC) on 9 December 2024 in respect of the potential acquisition.

“Accordingly, shareholders and the investing public are hereby advised that the Company will no longer be proceeding with the acquisition of a complimentary business as previously announced.”

CTC initiated an investigation on the planned acquisition of an additional shareholding in First Mutual by CBZ.

It sought to determine whether the proposed acquisition will likely substantially lessen the degree of competition in Zimbabwe or any substantial part of Zimbabwe or is likely to result in a monopoly situation which is or will be contrary to public interest as provided in section 32(4) of the Act.

CBZ Holdings Limited is a Zimbabwe Stock Exchange-listed financial services company with subsidiaries in the banking, insurance broking, short-term insurance, life assurance, microfinance, property development, maintenance, and management.

On the other hand, First Mutual Holdings Limited is also an integrated financial services entity with subsidiaries in the short-term insurance, life insurance, reinsurance, medical aid, and healthcare services as well as property development, maintenance, and management.