Zimbabwe & Malawi: Delta Corporation seeks approval to acquire stake in Chibuku Products

Zimbabwean public company, Delta Corporation Limited has applied to Comesa Competition Commission to acquire stakes in Chibuku Products Limited, the Nyasa Times reported on December 19.

Delta Corporation Limited, a Zimbabwean public company listed on the Zimbabwe Stock Exchange, is making the acquisition of control of Malawi Traditional Beverages Limited which is incorporated under the laws of Malawi as a private company.

Both Comesa Competition Commission and Malawi’s Competition Fair Trading Commission confirmed the issue to the local media.

Head of Mergers and Acquisitions at the Comesa Competition Commission, Willard Mwemba, said the case is still at preliminary stages of assessment.

“Currently, we are working with our counterparts at the Competition and Fair Trading Commission in Malawi (CFTC), the Competition and Tariff Commission of Zimbabwe and the Competition and Consumer Protection Commission of Zambia to determine the likely effects of the transaction in the market,” Mwemba said.

CFTC Director of Consumer Welfare and Education, Lewis Kulisewa confirmed the issue but said the application will be processed by Comesa.

“The merger application will be processed at the Comesa Competition Commission as it involves several Comesa member states,” he said.

This transaction is coming 14 months after CFTC approved the acquisition of 100 percent shareholding in SABMiller by AB InBev, the world’s largest brewer.

At the time of the acquisition, SABMiller was operating through Malawi Beverages Limited, Malawi Traditional Breweries Limited and Chibuku Products Limited.

It is not immediately clear whether staff under Chibuku Products will be assured of keeping their jobs in the event that the acquisition is approved by the Comesa Competition Commission.

Mwemba only said the commission will consider this matter [jobs issue] under public interest in its analysis of the effects of the merger.

“The commission has not yet finalized the assessment but the public shall be informed of our assessment once the transaction is considered by our Board,” he said.

According to a merger inquiry notice number 26 of 2017 posted on the Commission’s website, the two companies have submitted the relevant documents. The notice says Malawi Beverages has no activities other than holding shares in Chibuku Products.

The Comesa Competition Commission was established in 2004 to promote inter-regional trade among Comesa member countries. One way the commission does this is by promoting fair competition and penalizing uncompetitive trade practices in the Comesa region.

It has its headquarters in Lilongwe.

17 December, 2017