Africa-Press – Eswatini. The Public Service Pension Fund has made major investments as they have acquisitioned 45 per cent shares in Swaziland Radiology Services.
This is according to the Eswatini Competition Commission (ECC) merger decisions for the financial year 2022/23’s second quarter.
The commission examines merger notifications in order to make a determination on the effects of transactions on competition and then either gives conditional approval, approval with conditions or prohibits the transactions based on the outcome of the analysis.
The commission stated that it analysed and adjudicated on mergers and acquisitions within sectors that included the retail of pharmaceutical products, fast moving consumer goods (FMCGs), commercial property and farmland, supply of building material, insurance and manufacturing of precast concrete products.
The commission explained that PSPF was a defined benefit fund established for the management and administration of pensions for government (public sector) employees and provided products for its members and their dependents which included retirement annuities, death benefits, disability benefits and other pension-related benefits.
The assets of the fund according to ECC consist of contributions made by its members and Government (as their employer) as well as from yields from investments of the Fund.
The commission indicated that it considered the products of the firms and concluded that the relevant market was the provision of radiology services in Eswatini.
“There are no overlaps between the activities of the merging firms. Pursuant to the implementation of the proposed transaction, PSPF acquired control over Swaziland Radiology with 45 per cent shareholding,” ECC stated.
It disclosed that post-merger, the market shares in the relevant market, market concentration would not change in that the acquiring firm is a new player in the relevant market, countervailing power and barriers to entry would not be affected or altered hence, the transaction was unlikely to result in the substantial lessening or prevention of competition.
“Therefore, the transaction was approved without conditions,” ECC stated.
The target firm, Swaziland Radiology, according to ECC is a company incorporated in terms of the laws of Eswatini and is involved in the business of medical imaging by providing a range of radiology services including but not limited to the following, X-Ray, fluoroscopy, trauma radiology, computed topography, mammography and magnetic resonance imaging.
Such an investment comes at a time when PSPF has indicated plans to grow the fund by making sound investments.
PSPF is a fund established in terms of the Public Service Pensions Order of 1993 and it is constituted by all civil servants of the Eswatini Government who are its members.
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