PSPF BUYS 50% OF THE BRIDGE, VALLEY VIEW

MBABANE – PSPF has acquired 50 per cent shareholding of The Bridge Shopping centre in Mbabane, the Valley View Shopping centre in Ezulwini and the New Mall in Siphofaneni.

All these properties were developed and owned by MA Props (PTY) Ltd. The transaction or merger has been approved without conditions by the Eswatini Competition Commission (ESCC).
The competition commission secretariat, in its analysis, considered the activities of the merging parties and found that there are horizontal overlaps. MA Props and the Public Service Pension Fund  (PSPF) are both active in the commercial property market. The merging parties are in the markets for the provision of shopping malls and residential apartments. The transaction is categorised as Phase 2, since the combined market share of the merged entity in the relevant market for the provision of shopping malls in the Mbabane-Manzini Corridor is above 15 per cent, yet below 30 per cent. Pre-merger, PSPF has a market share of 13.38 per cent in the provision of shopping malls in the Mbabane-Manzini Corridor, through Woodland Shopping Centre, the Gables Shopping Centre, Bhunu Mall and the New mall.

Acquisition

As a result of the proposed transaction, the acquiring firm will accumulate a market accretion of 7.7 per cent through the acquisition of joint control in the Bridge Shopping Centre and Valley View Centre. It is worth noting that, the Fund has acquired 50 per cent stake of the residential flats situated at the Bridge Shopping Centre. Consequently, the combined market share post-merger will stand at 21.08 per cent in the provision of shopping malls in the Mbabane-Manzini Corridor. According to the commission, post-merger, the market shares in the relevant market and market concentration will be slightly altered. Countervailing power and barriers to entry will not be affected, hence the transaction is unlikely to result in the substantial lessening or prevention of competition. Therefore, the transaction was approved without conditions.

PSPF has further acquired 60 per cent shareholding in Completecare Medical Center from Swazi Star Center (Pty) Ltd. The target firm Completecare, is a company with limited liability, duly incorporated and registered in terms of the company laws of Eswatini and wholly owned by Swazi Star. Completecare is a new player in the market for the provision of private healthcare services in Eswatini.

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