ZAMBIA – Government Employees Pension Fund (GEPF) and ETG Input Holdings Limited, a global integrated agricultural supply chain group, intend to merge and have applied to competition and consumers protection bodies for approval.
The entities have also applied to the regional body, Common Market for Eastern and Southern Africa (COMESA) Competition Commission (CCC), and the Competition and Consumers Protection Commission (CCPC) for consideration.
According to the letter submitted to CCPC and availed to the Daily Mail on Monday, CCPC has been requested by CCC to obtain representation from interested parties on their views on the transaction, particularly on its effect on competition on the Zambian market.
“Zambia is among the member states that will likely be affected by the transaction.
The transaction has been notified with the CCC for the purpose of determining whether or not to approve it.
The commission concern is, primarily, whether the proposed transaction between the parties would or is likely to have the effect of substantially preventing or lessening competition in Zambia,” the letter reads.
The parties submitted that the proposed transaction involves the acquisition by GEPF of 49 percent of the issued shares in ETG Inputs Holdings Limited from ETG Mauritius.
GEPF is also active in Zambia in the provision of grain management, agricultural equipment and services to farmers, financial solutions and logistics services.
It operates in Zambia through its subsidiaries ETG Inputs Zambia Limited, Zambian Fertilisers Limited and Farmarama Limited Zambia and is active in the sale of agricultural chemicals and fertilisers.
Following the application, CCPC has written to the Zambia National Farmers Union, on behalf of CCC, requesting for submission of comments on the transaction.
The union has, therefore, called on its members to submit their comments and approval to its office.
May 18, 2017: Daily Mail