- Competition Authority approves its acquisition of Crosscorn
The Competition Authority has unconditionally approved a proposed acquisition of 100 percent of the issued share capital in Crosscorn (Pty) Ltd by MHMK Capital Botswana Ltd.
The Acquiring Enterprise, MHMK, is a liability limited company incorporated in accordance with the Laws of the Republic of Botswana. It operates an asset management services business from a principal business address in Botswana with a focus on alternative investments in private equity and private credit.
MHMK is wholly controlled by MHMK Capital (Pty) Ltd (MHMK Zimbabwe), a company which is incorporated in accordance with the Laws of Zimbabwe. MHMK Zimbabwe is in turn a wholly owned subsidiary of MHMK Group Limited (MHMK Group). The Acquiring Enterprise controls MHMK Advisory Partners Limited which is a firm that operates a corporate and financial services business. The directors of MHMK are Dudu Marryat Garekwe (Motswana) and George Manyere (Zimbabwean).
The target enterprise, Crosscorn, is a limited liability company incorporated in accordance with the Laws of the Republic of Botswana. It is wholly controlled by Scipion Active Trading Fund (SATF), a company constituted under the Laws of the Cayman Islands. Crosscorn operates a seed production and distribution business at Mmamashia, Botswana and produces maize seeds, sorghum seeds, cowpea seeds and fertilizer. The Competition Authority says the target enterprise does not directly or indirectly control any firms in Botswana.
The Directors of Crosscorn are Jacobus Christiaan Campher (South African), Tebogo Robert Motingwa (Motswana), and Christopher Leeds Rogers (American). In view of the nature of the products and services offered by the target enterprise, the Authority says it has concluded that the relevant market is production and distribution of seeds and fertilizers products in Botswana.
โTherefore, the proposed merger is not expected to reduce the level of competition in the production and distribution of seeds and fertilizers in Botswana,โ the Authority says, adding that the structure of the relevant market will not change post-merger since the merging parties are not active in the same market. โAs such, the proposed transaction will not result in a market share accretion of the merged entity or any other entity in Botswana,โ says the Competition Authority.
It adds that it has determined, through the analysis of the facts of the merger, that the structure of the relevant market will not change upon implementation of the proposed merger and that the proposed transaction is not likely to result in any adverse effects on competition or endanger continuity of services in the production and distribution of seeds and fertilisers in Botswana.
The transaction was notified to the Competition Authority on 3 November 2022 and the merger assessment was completed on 24 November 2022.
