Times Of Swaziland: MB. MOTORS RESTRUCTURING APPROVED, BUT...

MB. MOTORS RESTRUCTURING APPROVED, BUT...
================================================================================
BY ASHMOND NZIMA on 07/04/2021 07:32:00


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.