Agra acquires two arms and ammunition retailers

24 Jul 2013 09:20
WINDHOEK, 23 JUL (NAMPA) – The Namibian Competition Commission (NaCC) has approved the proposed merger of Agra Limited and A. Rosental (Pty); and Agra and Kalahari Arms and Ammunition Limited, trading as Safari Guns and Outfitters.
Agra made an offer to acquire both undertakings, and the Commission approved the merger, but with behavioural conditions.
NaCC's Chief Executive Officer (CEO) and Secretary Heinrich Mihe Gaomab II announced on Wednesday at a media briefing that the Commission consulted and further held a stakeholders’ conference with customers and competitors to the merging parties.
“The Commission approved the merger, but with behavioural conditions, which are, among others, to ensure proper competitive conduct on a post-merger basis in that market, and to effect a structure of safeguarding a competitive process in that market,” stated Gaomab.
There were five arms and ammunition retailers in the country, but with the merger of the two into Agra, the arms and ammunition retailers were reduced to three.
”The behavioural conditions are aimed for Agra not to squeeze out the competitors in the market,” he stressed.
Meanwhile, the Commission prohibited the proposed merger between Namox Limited and the Liquid Petroleum Gas (LPG) business of Puma Energy.
The NaCC CEO described the proposed merger as a 'concern', and prohibited it on the grounds that it would entail an increased level of concentration in the relevant market, and that the transaction would have entailed the merged entities acquiring and strengthening a dominant position in the relevant market.
“The Commission is concerned with the effect the proposed merger would have had further on small and medium-sized undertakings, and the effect that it would have been difficult for small undertakings to enter and expand within the relevant market,” he stated.
(NAMPA)
MMT/ND/TK