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THe Competition and Consumer Protection Commission (CCPC) has rejected the merger application by Toyota Tsusho Corporation (TTC) to acquire shares in CFAO’s Pinault Printemps Redoute (PPR Group) on grounds that it will acompetition on the motor vehicle market.
During the 33rd extra-ordinary board meeting held on January 23, 2013, the board of commissioners noted that from the investigations conducted by the Commission, it was clear that the planned acquisition of shares by TTC in CFAO was likely to lead to substantial lessening of competition on the Zambian market.
CCPC executive director Chilufya Sampa says the board of commissioners found that the planned acquisition of shares by TTC in CFAO was likely to lead to substantial lessening of competition on the market of selling, distribution and maintenance of new vehicles of makes supplied under the franchisee.
Mr Sampa said in a statement availed to the Daily Mail that the competition would be affected because both parties have presence in Zambia through their subsidiaries.
“The board of commissioners of CCPC has rejected the merger application by TTC to acquire shares in CFAO’s PPR Group on grounds that it had established that there were competition concerns likely to emanate from the merger once approved.
“The planned acquisition of shares by TTC in CFAO was likely to lead to substantial lessening of competition on the Zambian market of selling and distribution of new saloon vehicles, new sports utility Vehicles (SUVs), new single and double cab vehicles, motor vehicle parts, including offering servicing and maintenance of motor vehicles of the makes supplied under the franchisee as both parties to the transaction have presence in Zambia through their subsidiaries,” he said.
