Africa-Press – Eswatini. Two local entrepreneurs and businessmen Jose Rodrigues and Pedro Vaz Rogrigues have acquired 100 per cent shares of Zulwini Holdings, formerly trading as Timbali Lodge.
Together, they have several years’ experience in successfully running and managing companies in Eswatini. Currently, they are directors and shareholders of Rod Industries (Pty) Ltd (a textile manufacturing company), Matsapha Repair Centre (Pty) Ltd (a workshop and panel beating company), and Agritech (Pty) Ltd (a tractor dealership and workshop). According to the Eswatini Competition Commission (ESCC), the directors intend to invest in the hospitality and tourism industry and expand their business portfolio to include the provision of hospitality and related services. Their target firm, Zulwini Holdings, is a limited liability company duly registered and incorporated in accordance with the laws of Eswatini.
Application
The target firm used to trade as Timbali Lodge, however, due to a decline in the hospitality and tourism industry, it made an application to revoke its trading licence as an accommodation establishment. Zulwini Holdings operated a housing estate, hotel and a caravan park that offered 18 executive, five luxury suites and five self-catering family units. It also offered a restaurant, conference facilities, as well as a venue for weddings, private parties and functions. When making the merger decisions for the second quarter of the 2022/23 financial year, the commission considered the products of the firms and concluded that the relevant market was the provision of hospitality and related services in the Mbabane-Manzini corridor. In its analysis, the commission considered the activities of the merging parties and found that, there were no product overlaps in the relevant market since the acquirers were not involved as shareholders in any undertaking in the hospitality and tourism industry; an industry the target firm belongs to. As such, the transaction was categorised as a Phase I merger. 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.
Substantial
Countervailing power and barriers to entry will not be affected, therefore, the transaction is unlikely to result in the substantial lessening or prevention of competition. The commission approved the transaction without conditions.
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