a tripartite report - Unctad

ZAMBIA
company is that of mixed commercial farming, i.e., agricultural production and processing of agricultural produce
but not limited to wheat, maize, soya milling and baking.
The parties have submitted that Mount Isabelle Limited is incorporated in Zambia under the Companies Act Cap
Thabo Mbeki Road in Lusaka while their business address is at Farm No. 923 in Mkushi. The principal activity of the
company is that of manufacturing and mixed commercial farming.
On the basis of this formal application, the Commission instituted investigations under Section 25 of the Competition
and Consumer Protection Act, No. 24 of the Laws of Zambia (‘the Act’) to establish the facts surrounding the
Statutory Instrument No. 46 of 2006 the parties made payment equivalent to Zambian Kwacha [ ].
Interim Authorization
The Technical Committee at their 34th Meeting held on the 25th July 2011, granted an Interim Authorization Cena
Farms Limited and Mount Isabelle Limited because the preliminary market inquiry showed that the proposed
transaction would not likely prevent, restrict or distort competition to an appreciable extent in the relevant product
market and that it was unlikely to have a detriment effect on the economy of Zambia in general.
Market Inquiries
market survey that was conducted and other primary data researched from the internet and other literature readings.
In addition, the Commission wrote to third parties in accordance with Section 29 of the Act requesting for their
comments regarding the proposed transaction.
Relevant Market
products overlapped:
(i) Agricultural Production of Maize: It appears the relevant product market is the agricultural production of maize
and food processing.
(ii) Agricultural Production of Soya Beans: It appears the relevant product market is the agricultural production of
soya beans and food processing.
(iii) Agricultural Production of Wheat: It appears the relevant product market is the agricultural production of wheat
and food processing.
Market Concentration
relevant market is largely fragmented with subsistence and commercial farmers nationwide who equally produce
products such as maize, wheat and soya.
The estimated market share of Cena Farms total agricultural production is less than 1 per cent and Mount Isabelle’s
total agricultural production is less than 2 per cent. Therefore, the total production for both Cena Farms and Mount
Isabelle post merger transaction is likely to be approximately 3 per cent of the total market. This market includes
Therefore, the level of production that Cena Farms is likely to assume does not necessarily entrench its market position
and the merger would not result into increased market concentration capable of raising competition concerns
in the relevant product market.
Import Competition
The relevant product market has no import competition restrictions. However, it would still not make economic
a bumper harvest.
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