Story by Stanley James, Business Editor
ZIMBABWE registered over 20 company mergers worth more than US$160 million in 2024 as firms target recovery and growth in response to the prevailing macroeconomic policies.
According to the latest Competition and Tariff Commission (CTC) annual report, tabled this week, there is growing interest by industry and commerce to merge operations.
The initiative is aimed at growing markets, reducing costs, diversifying products and services, as well as enhancing economies of scale.
Delta Corporation Limited recently acquired a controlling stake in Schweppes Zimbabwe Limited, while Kamativi Tin Mine has also merged with PD Group.
CTC Chairperson, Mr Jimmy Pscillos, says the increase in mergers reflects a commitment to remain competitive.
“As the regulator, it is our duty and role to ensure that the merger transactions are done in a manner that facilitates the growth of the economy for the year under review. It is imperative to note that the manufacturing sector dominated the merger transactions, followed by the ICT, retail, mining, agriculture and other industries.
“Our commitment to safeguard the economy from harmful mergers remains as the key thrust as we seek to formulate strategies that are aligned to the government’s policy towards ensuring transparency and accountability therefore any merger that we suspect to be harmful indeed it will not sail through, going forward it is our responsibility to focus on transactions that bolster economic growth,” he said.
The Commission has, however, been called upon to focus on fair trading practices for the benefit of consumers.
“What we have witnessed at this AGM reflects the authority or power vested in the CTC in regulating those companies that intend to combine their operations.
While it is not all the mergers that sail through, it is our sole insight as a committee that we recommend the CTC to exercise a lot of diligence, especially in disapproving those mergers that have negative implications on the side of fair trading practices, as well as those mergers that tend to create a single largest or dominant player, thereby dismantling the spirit of competition which is the hallmark in boosting quality of goods and services, and leading to affordable pricing that benefits the consumers, boosts spending, and creates an overall multiplier effect to the fiscus in terms of access to more revenues from taxes,” said Parliamentary Portfolio Committee on Industry and Commerce chairperson, Honourable Clemence Chiduwa.
With over five merger transactions still under review and more expected in 2025, market watchers expect the Commission to safeguard domestic markets by approving mergers which positively impact the country’s development agenda.
