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MB. MOTORS RESTRUCTURING APPROVED, BUT...

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MBABANE – Eswatini Competition Commission has approved with a condition shareholding restructuring in Mbabane Motors (Pty) Ltd and certain allied companies namely, Consumer Sales (Pty) Ltd, Tabprop (Pty) Ltd and Swazi Delta (Pty) Ltd.

The Commission was established in 2007 to provide for the encouragement of competition in Eswatini’s economy by controlling anti-competitive trade practices, mergers and acquisitions, protecting consumer welfare and providing for an institutional mechanism for implementing these objectives. According to the Commission’s third quarter report for 2020/21, the acquiring parties are Jody Foss and Brett Foss, who are both adult Eswatini male citizens.

registered

The target parties together form Mbabane Motors Group. Mbabane Motors is a company registered in accordance with the laws of the country. Mbabane Motors is a motor vehicle franchise dealer and the holder of the Isuzu, Chevrolet franchises in Eswatini. Its major business is the franchising of Isuzu, Opel, Suzuki motor vehicles and Isuzu trucks. The Commission said it considered the products of the firms and concluded that the relevant markets were for the franchised sale and fuel service station of motor vehicles in Eswatini; and market for letting of commercial space in Mbabane and Manzini town in Eswatini. “There are no overlaps that are created as a result of the proposed transaction in the relevant markets. Post-merger, the market shares in the relevant market, market concentration, countervailing power and barriers to entry will not be affected and hence the transaction is unlikely to result in the substantial lessening or prevention of competition,” ruled the Commission.

approved

The transaction was approved with a condition that there should be no merger specific retrenchments or redundancies that may affect the employees of the restructured enterprises. Meanwhile, among the major developments registered during the quarter under review was the acquisition by Retailability (Swaziland) Proprietary Limited of parts of the Edgars business conducted by Edcon, through Edgars stores Swaziland Limited.
Retailability Proprietary Limited, the acquiring firm, controls the acquiring party Retailability Eswatini. Retailability is a retailer of apparel and owns apparel retail stores trading under the names ‘Beaver Canoe, Style and Legit. The Beaver Canoe stores sell clothing apparel for men and boys only. The Style stores offer both men and women contemporary and formal fashion.

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