Company mergers face tight scrutiny

By Stanley James

Business Editor

ZIMBABWE is maintaining a fair business playing field by putting in place measures to stamp out mergers that threaten the development of firms.

A report by the Competition and Tariff Commission of Zimbabwe (CTC) shows several companies have since the start of this year submitted proposals to merge operations.

However, most of them have had their proposals turned down as the commission cited irregularities and the need to protect the interests of industry and consumers.

“It is imperative to ensure that competition is the hallmark of good business practices thereby ensuring the sustainability of the economy in light of development,” said Tatenda Zengeni, Competition and Tariff Commission spokesperson.

Pan African Chamber of Commerce board member, Mr Langton Mabhanga explained the importance of maintaining a fair playing field.

“This level playing field will also enable more players to come and invest in the country and ensure that there is affordable pricing, growth of business units or models which has a multiplier effect on the economy,” said Langton Mabhanga, a Pan African Chamber of Commerce board member.

Under the Competition Act, there is a need to promote and maintain competition to sustain industrial development.

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