CCPC Approves Two Poultry Mergers07 May 2013
ZAMBIA - The Competition and Consumer Protection Commission (CCPC) Board of Commissioners has approved two mergers in the poultry sector, public relations officer Hanford Chaaba said.
According to AllAfrica, Mr Chaaba said at the weekend that the first merger was between Bokomo Zambia Limited and Mega Eggs Limited, while the second merger was between Zamchick Limited and Rainbow Chickens Limited of South Africa.
He said Bokomo Zambia had applied to the commission to buy Mega Eggs Limited's business and assets, while Rainbow Chickens Limited had applied to take more than 49 per cent shares of Zamchick Limited for a total cash consideration of US$14.25 million.
In granting authorisation to the transactions, Mr Chaaba said the Board of Commissioners noted that the investigations and assessments had revealed that the transactions would not raise any competition concerns that might lead to substantial lessening of competition.
The deal would not result in abuse of dominant position of market power or negate public interest issues in relevant product market of growing, distribution and sale of broiler chickens.
"The Board of Commissioners noted that Zamchick market share of 10 per cent in the poultry is less than 30 per cent.
"The Board has also noted that there will be no change in the market structure in view of the fact that Rainbow Chickens Limited is currently not operating in the Zambian poultry industry," Mr Chaaba said.
He said the Board of Commissioners had, however, authorised the two mergers on condition that the parties would continue to honour the agreements that Zamchick and Mega Eggs had entered into the market with the local suppliers and other local third-line industries.
The Board has further directed the parties to ensure that no existing jobs, on all sides should be lost by virtue of the transaction for at least one year and also to develop a full range of value added products in conformity with their submission in the commission.
Mr Chaaba said the commission had reiterated the need to ensure that no jobs were lost as a result of the transaction in view of the fact that the Government priority on its developmental agenda was job creation.ThePoultrySite News Desk