The Competition and Consumer Authority has approved the proposed acquisition of 100 percent issued shares of Otraco International (Pty) Ltd from Downer EDI Mining by Bridgestone Mining Solutions Australia (Pty) Ltd.
“The Authority determined, through the analysis of the facts of the merger, that the proposed transaction is not likely to result in a substantial lessening of competition, or endanger the continuity of service in the relevant market in Botswana, the market regulator stated. “Furthermore, 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.
Bridgestone Mining is a company incorporated under the Laws of Australia and is active in Botswana through Bridgestone Botswana (Pty) Ltd which is held through Bridgestone South Africa Holdings (Pty) Ltd. Bridgestone Mining offers pit-to-port solutions for the mining, industrial and construction industries in Australia while in Botswana it is in the wholesale supply of tyres for consumers (car, 4×4 and SUV tyres), as well as the supply of tyres and related services to commercial customers (including in respect of tyres for trucks and buses, and agricultural tyres and OTR tyres).
The target enterprise, Otraco International, is a company incorporated under the Laws of Australia and is active in Botswana through Otraco Botswana. The international company offers light vehicle tyre management solutions to customers across the mining sector in Australia, New Zealand, Chile and southern Africa (South Africa, Botswana and Namibia).
In terms of the relevant market, the assessment of the proposed transaction revealed that the acquiring enterprise and the target entity are both active in the provision of OTR tyre management services internationally. However, in Botswana, the target entity’s current activities are limited to the supply of its tyre management software and ad hoc sales of industrial products to customers based in Botswana.
On the other hand, although the provision of OTR tyre management services forms part of the acquiring firm’s overall service offering in southern Africa, the acquirer does not currently provide these services in Botswana and is instead primarily active in relation to the wholesale supply of tyres in the country. In light of that, there is lack of geographic overlap between activities of the merging parties in Botswana.
CCA further said its assessment did not reveal any substantial lessening of competition concerns that could arise as result of the proposed transaction due to the absence of geographic overlap in the activities of the merging parties. “Accordingly, the proposed transaction is not expected to alter the market structure in the relevant market post-implementation; and as such, the Authority does not anticipate any competition concerns and public interests concerns to arise in the relevant market in Botswana post-merger,” CCA said authority concluded .
