Africa-Press – Eswatini. As a result of the damage to the retreading facility of Swazi Bandag during the civil unrest, the company found itself out of the market for the retreading of tyres in Eswatini.
Therefore, to re-enter the market once again, Swazi Bandag (Pty) intends to acquire the assets of Swaziland Tyre Services (Pty) Ltd.
The acquiring firm Swazi Bandag, a company registered in accordance with the company laws of the Kingdom of Eswatini and which carries on business at industrial site in Mbabane and also in the industrial site in Manzini.
In the industrial area in Mbabane, Swazi Bandag operated a retreading facility which was completely damaged during the political unrest that took place at the end of June 2021. This was the only retreading facility that was owned by Swazi Bandag as the Manzini outlet only does selling and fitting of tyres.
The target assets are from Swaziland Tyre Services, a company incorporated in accordance with the laws of the Kingdom of Eswatini which has its principal place of business at Lot 509 King Mswati III Avenue, Matsapha Industrial Site.
Swaziland Tyre Services is controlled by Bridgestone South Africa Commercial (Pty) Ltd. The target assets are the retreading facility as well as the immovable property being Lot 509, King Mswati III Avenue at Matsapha Industrial Site currently owned by Swaziland Tyre Services.
Eswatini Competition Commission Chief Executive Officer Muzi Dlamini has reported that the Secretariat considered the products of the firms and concluded that there were two relevant markets. These were the provision of tyre re-treading services in the kingdom and immovable / commercial property at Matsapha Industrial Site.
Dlamini disclosed that the commission found that there were no overlaps in the activities of Swazi Bandag and Swaziland Tyre Services in the market for the provision of tyre retreading services in Eswatini since Swazi Bandag exited the relevant market for the provision of tyre retreading services when their facility was destroyed during the unrest. The transaction was therefore categorised as a phase one.
It should be noted that pursuant to the implementation of the proposed transaction, Swazi Bandag will acquire immovable property being Lot 509 in Matsapha Industrial Estates and equipment for the provision of tyre retreading services from Swaziland Tyre Services.
“Post-merger, the market shares in the relevant market and market concentration will not be altered. Countervailing power and barriers to entry will also not be affected hence the transaction is unlikely to result in the substantial lessening or prevention of competition,” said Dlamini when announcing the transaction had been approved by the commission.
80% Africa Chicks shares sale approved
The Eswatini Competition Commission has approved the acquisition of 80 per cent shares in Africa Chicks (Pty) Ltd by Siyalu Agri Investments and Ross Mackie.
The commission’s Chief Executive Officer (CEO) Muzi Dlamini explained that each of the acquiring parties intend to acquire half of the shares held by James Kevin.
It was mentioned that Siyalu is a newly formed company established in terms of the laws of the Kingdom of Eswatini whose primary objective was to hold shares, interests and pecuniary rights in other companies.
Siyalu has a principal place of business at Independent Centre Building, second floor, Office No. 202E, Dzeliwe Street, Mbabane.
Ross Mackie is a minority shareholder in Africa Chicks with 20 per cent shares, who intend to increase his stake at Africa Chicks.
Once the proposed transaction gets approved, he will become a majority shareholder with 60 per cent shareholding and Siyalu will own 40 per cent shareholding.
The target firm is Africa Chicks, a company incorporated in terms of the laws of Eswatini which has a principal place of business at Exit 1 Ngwenya Industrial Site, Oshoek. The company carries on the business of supplying day old broiler chicks countrywide as well as exportation of same to Mozambique at a limited scale.
Dlamini explained that the secretariat considered the products of the firms and concluded that the relevant market is the supply of day-old broiler chicks in the country.
The CEO pointed out that were overlaps since Mackie was already a minority shareholder in the target entity and as a result of the transaction his shareholding would increase from 20 per cent to 60 per cent in the target entity.
He said Siyalu was not engaged in any business relating to the supply of day-old broiler chicks. The transaction was categorized as phase one as there would be no increase in market share as a result of the transaction.
Pursuant to implementation of the proposed transaction, Siyalu and Mackie will be the only shareholders in Africa Chicks and the target entity will be controlled by Mackie.
“Post-merger, the market shares in the relevant market and market concentration will not be altered such that the structure of the market will remain unchanged. Countervailing power and barriers to entry will not be affected hence the transaction is unlikely to result in the substantial lessening or prevention of competition,” added Dlamini.
For More News And Analysis About Eswatini Follow Africa-Press
