Times Of Swaziland: MR PRICE NOW OWNS STUDIO 88 IN ESWATINI

MR PRICE NOW OWNS STUDIO 88 IN ESWATINI
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Mhlengi Magongo on 30/12/2022 08:57:00


MBABANE - The Eswatini Competition Commission (ECC) has approved nine mergers
and acquisitions in the second quarter of 2022.
ECC examines merger notifications in order to make a determination on the
effects of such transactions on competition and then either gives conditional
approval, approval with conditions or prohibits the transactions based on the
outcome of the analysis.
The approved mergers in the second quarter include the acquisition by Mr. Price
Group Limited (Mr. Price) of sole control over Blue Falcon 188 Trading (Pty) Ltd
Trading as Studio 88 Eswatini (Pty) Ltd (Studio 88 Eswatini). ECC said they
considered the products of the firms and concluded that the relevant market was
the retail of branded sports-lifestyle; athleisure-oriented clothing apparel,
footwear and accessories by departmental chain stores in Eswatini.
Transaction
They said there were no overlaps between the activities of the merging parties
in the relevant market and that the proposed transaction was as such categorised
as a Phase 1 since there were no overlaps in the relevant market.
“Post-merger, there will be no market accretion in the relevant market, market
concentration, countervailing power and barriers to entry will not be affected
and the transaction is unlikely to result in the substantial lessening or
prevention of competition. Therefore, the proposed transaction was approved
without conditions,” added the commission.
Another approved acquisition was the acquisition of 49.36 per cent shares by
ADIA (PTY) LTD (ADIA) IN Orchard Insurance (PTY) LTD (ORCHARD) from African
Alliance Limited (African Alliance). The Commission said there were overlaps
between the activities of the merging parties in the relevant market since Adia,
was already a shareholder in Orchard.
Market
ECC added that the transaction was categorized as phase 1 because the combined
market share post-merger is below 15 per cent. “There will be no market share
accretion since Adia and its shareholder does not own, directly or indirectly,
any other insurance business in Eswatini. Post-merger, the market shares in the
relevant market, market concentration, countervailing power and barriers to
entry will not be affected and, hence the transaction is unlikely to result in
the substantial lessening of competition in the country. Therefore, the
transaction was approved without conditions,” added the commission.
Merger
The third merger and acquisition approved was the acquisition by Xerotech
Proprietary Limited (XEROTECH) of the entire issued share capital in Altron
document solutions business division (ADS) of Altron TMT Proprietary Limited.
ECC said the transaction was approved without conditions.
The commission said the transaction was a foreign-to-foreign merger between two
South Africa entities. However, due to their sales into Eswatini there was a
horizontal overlap in their activities particularly in regard to the sale of OAE
and related consumables.
They said the transaction was categorised as Phase 1 merger since the combined
market shares of the merging firms was less than 15 per cent.
The acquisition of 45 per cent shareholding by Public Service Pensions Fund
(PSPF) in Swaziland Radiology Services (Swaziland Radiology) was also approved
by the commission. ECC said there were no overlaps between the activities of the
merging firms. Pursuant to the implementation of the proposed transaction, PSPF
acquired control over Swaziland Radiology with 45 per cent shareholding.
Firm
Post-merger, ECC said the market shares in the relevant market, market
concentration, would not change in that the acquiring firm was a new player in
the relevant market, countervailing power and barriers to entry would not be
affected or altered, hence the transaction was unlikely to result in the
substantial lessening or prevention of competition. Since it was a busy year,
the commission further approved the acquisition by Eric Slabbert Agencies (PTY)
LTD of industrial land from The Reclamation Group (Swaziland) (Pty) Ltd. Eric
Slabbert Agencies is a private company with limited liability and has been in
operation in Eswatini since 2004 and its operations include a fabric and paper
facility at 12th Street, Matsapha (premises leased from the Eswatini Investments
Promotion Authority (EIPA).