The Competition and Consumer Authority has given the retail company Maxisave the greenlight to acquire commercial gaming farm, Marakalalo Estate, The Business Weekly & Review has established.
Pursuant to Section 53(4)(a)(ii) of the Competition Act of 2018, the Competition and Consumer Authority announced its decision in relation to the proposed sale and purchase of an immovable property, being Portion 5 of the Farm Marakalalo Estate No.15, from Thornpark (Pty) Ltd by Maxisave Botswana (Pty) Ltd.
The transaction was notified to the Authority on 8 June 2021and the merger assessment was completed on 15 July 2021.
The acquiring enterprise, Maxisave Botswana, is a company incorporated under the Laws of Botswana. Maxisave Botswana is in the business of wholesale and retail of steel, timber and cement nationwide.
The target enterprise, Thornpark, is a company incorporated under the Laws of Botswana. Thornpark is the holding company of Portion 5 of Marakalalo Estate No.15, a farm located near Machaneng Village in the Central District of Botswana.
According to the CEO of the Competition and Consumer Authority, Tebelelo Pule, the analysis and the facts of the proposed transaction reveal that the merging parties operate in different markets all together in that Maxisave is in the business of wholesale and retail of steel, timber and cement nationwide from Gaborone, while Portion 5 of Marakalalo Estate is in the business of commercial game farming.
“The merger assessment therefore did not reveal any overlap between the merging parties’ activities,” Pule said. “Accordingly, the proposed transaction is not expected to alter the structure of the relevant market in Botswana. In view of the nature of the products and services offered by the target enterprise, the market under consideration is defined as commercial game farming.”
The geographical market is national (Botswana).
The proposed transaction is not expected to reduce the level of competition in the market under consideration in Botswana, Pule noted, adding that there is absence of both geographic and product overlaps in the activities of the merging parties.
Therefore, the proposed transaction is not envisaged to change the competition landscape in the relevant markets post-implementation. Accordingly, the Authority does not anticipate any competition concerns to arise in the relevant market in Botswana post-merger, Pule emphasised.
She said the proposed transaction will not result in the merged entity attaining any dominant position post-implementation due to a lack of overlaps in the activities of the merging parties. The structure of the relevant market is not expected to change post-merger and therefore the proposed transaction is not expected to result in a market share accretion of the merged entity or any other entity in Botswana.
“In terms of public interest considerations, the proposed merger will not have any negative effects on public interest issues in Botswana,” Pule said. “In particular, there will be no adverse effects on employment in Botswana. The Authority, therefore does not envisage any job losses or any other adverse public interest concerns as a result.”
The Authority determined, through analysis of the facts of the merger, that the proposed transaction is not likely to result in a substantial lessening of competition or endanger continuity of service in the relevant market in Botswana. There is no acquisition of market dominance post-merger or any negative effect on public interest in Botswana identified in relation to the provisions of the Section 52 of the Competition Act 2018.
“Pursuant to the provision of Section 53 of the Act, the Authority has unconditionally approved the proposed sale and purchase of an immovable property, being Portion 5 of the Farm Marakalalo Estate No.15, from Thornpark (Pty) Ltd by Maxisave Botswana (Pty) Ltd,” the Authority announced.
“However, as stated under Section 61 of the Act, this approval does not override or negate any other mandatory statutory approvals or processes that any of the parties to this merger must comply with under the Laws of Botswana.”