This, however, comes with conditions to address competition concerns and potential negative impacts on employment.
The first merger involves the company Vitol Emerald Bidco (VEB) acquiring 74% of Engen Limited, granting VEB sole control.
VEB is part of the Vitol Group and specialises in energy marketing and trading, dealing primarily in crude oil, petroleum products and natural gas.
Engen is an Africa-based energy group that focuses on petroleum product marketing and distribution through a network of service stations.
According to Dina //Gowases, the spokesperson of the NaCC, the Engen merger holds implications for market dominance and potential job redundancies, prompting the commission’s cautious approval with conditions to safeguard fair market practices and employment stability.
“The merged undertaking shall, within the first divestment period, divest the divestiture business on reasonable commercial terms to a Namibian owned undertaking or undertakings subject to receipt of all regulatory approvals,” //Gowases says.
She says there has also been a restriction on the supply of fuel to divested service stations for five years post-divestment to prevent unfair competition.
The second approved merger involves RWCo GmbH & Co KG acquiring Schwenk Namibia.
RWCo GmbH & Co KG is involved in the manufacture, production and distribution of building materials, while Schwenk Namibia, the majority shareholder of Ohorongo Cement, holds interests in companies that operate in different industries, including renewable energy and cement production.
According to //Gowases, this is a conglomerate merger and no competition is eliminated, and the acquirer pre-merger has no market share.
“It is, therefore, unlikely that the proposed merger would result in the prevention or substantial lessening of competition,” she says.
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