Times Of Swaziland: MATATA STORES SOLD  TO SPAR GROUP

MATATA STORES SOLD  TO SPAR GROUP
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  BY KWANELE DHLADHLA  on 13/11/2018 00:36:00


MBABANE – Matata Retail (Pty) Ltd previously known as L.C Von Wissel (Pty)
Ltd, has been acquired by Spar Trading (Pty) Ltd.
Swaziland Competition Commission (SCC) Chief Executive Officer (CEO) Thabisile
Langa, explained that the acquiring company is a newly-formed entity
incorporated in accordance with the company laws of Eswatini.
Langa said Spar Trading (Pty) Ltd is a wholly owned subsidiary of the Spar Group
Limited, which is a company incorporated in accordance with the company laws of
the Republic of South Africa.
Listed
The CEO said Spar Group Limited is a public company listed on the Johannesburg
Stock Exchange and is involved in the trading of fast moving consumer goods
(FMCGs).
The target firm, Matata Retail (Pty) Ltd had business operations in the country
through owning the following shops - Moneni Spar and Tops, Matata Spar and Tops,
Big Bend Spar and Tops and MpakaSavemore.
Langa said when analysing the transaction, the products of the firms were
considered and it was concluded that there were two relevant markets in this
transaction; the wholesaling of FMCGs in Eswatini and the retailing of FMCGs in
the Manzini, Moneni, Mpaka, Matata and Big Bend corridor of Eswatini.
Wholesaling
“Analysis revealed that a vertical relationship existed between the two
relevant markets identified as wholesaling of FMCGs, is an integral process into
the retailing of FMCGs,” said Langa.
The CEO stated that the potential for input and customer foreclosure was
considered in the analysis of the transaction, and it was concluded that these
could not arise as a result of the transaction.
“Further analysis revealed that post-merger, market shares in the relevant
markets, market concentration, countervailing power and barriers to entry would
not be affected and hence, the transaction was not likely to result in the
substantial lessening or prevention of competition. The transaction was approved
without conditions,” added Langa.
Matata Group CEO Hans Steffen confirmed that the transaction has been finalised
without providing the value of the transaction.
Charge
“We have sold the stores but will continue to be in charge of the buildings at
Matata,” briefly said Steffen.
During the same quarter, SCC also approved acquisition of AON Holdings B.V.’s
60 per cent shareholding in AON Swaziland (Pty) Ltd.
The acquiring firms of the shareholding valued at E28 million were the Swaziland
Industrial Development Company Limited (SIDC) and AON Swaziland Staff Share
Ownership Plan Trust (ASSOPT).
Langa explained that the commission considered the products of the merging
parties in Eswatini and concluded that the relevant market was the provision of
short-term insurance broking, reinsurance and pension fund administration
services in Eswatini.
Langa clarified that analysis revealed that there were no overlaps between the
activities of merging firms in the relevant market and as such, the transaction
was categorised as a phase one.
“As a result of the transaction, SIDC and ASSOPT will attain the 60 per cent
shares that were owned by Aon Holdings in AON post-merger. They will each attain
an additional 30 per cent shares to their current holdings in AON. This will
result in SIDC having 45 per cent shares and ASSOPT having 39 per cent shares in
AON post-merger, while the shareholding of the Government of Eswatini in AON
will remain unaltered at 16,” said Langa.
The SCC CEO said the transaction was merely a change of shares ownership in the
target firm, as the acquiring firms were replacing one of the shareholders (Aon
Holdings) which was exiting its ownership of AON.
Transaction
“As a result of the transaction, Aon Holdings will relinquish its holdings in
AON, and SIDC and ASSOPT have acquired Aon Holdings’ shares in AON
post-merger,” Langa explained.
Langa added that the commission concluded that the market shares in the relevant
markets, market concentration, countervailing power and barriers to entry would
not be affected, hence the transaction was unlikely to result in the substantial
lessening or prevention of competition. The transaction was approved without
conditions.
SIDC CEO Phiwayinkhosi Ginindza said they were grateful that the transaction had
been approved by the commission.
“We considered the shares acquisition as a viable investment when taking into
account the fact that AON has been a profitable business,” said Ginindza.