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Oliver Kazunga, Senior Business Reporter

THE Competition and Tariff Commission (CTC) approved 14 mergers and acquisitions last year with three of them having been approved in the second half of 2019.

Between 2017 and last year, there was a surge in the number of mergers and acquisitions as companies sought to consolidate their balance sheets as well as strengthen their market share.

In a public notice yesterday, the CTC said in the second half of last year, it approved without conditions three mergers and acquisitions involving Edgars Stores Limited by SSCG Africa Holdings, a post-merger between Intercape Ferreira Mainliner (Pvt) Limited and Pathfinder Luxury Coaches (Pvt) Limited and the acquisition of Cut Rag Processors Private Limited by Gold Leaf Holdings.

In the transaction involving Edgars Stores Limited, the commission said: 

“The transaction involved the acquisition of 41,07 percent shareholding by SSCG Africa Holdings through Bellfield Limited. The transaction was classified as a conglomerate in nature with horizontal elements.”

The acquiring company, SSCG, is a Mauritius-registered company and has an office in Zimbabwe.

SSCG is an investment vehicle investing in small and medium sized companies as well as listed investment mainly focusing on the sub-Saharan Africa region registered in Mauritius.

The target company, Edgars Stores Limited, is a clothing retail chain store company listed on the Zimbabwe Stock Exchange. 

Its core business is retailing of footwear, clothing, textiles and other accessories.

The post-merger between Intercape Ferreira Mainliner (Pvt) Limited and Pathfinder Luxury Coaches (Pvt) Limited, CTC said, involved a joint venture of a 50-50 shareholding between the parties.

“Both parties involved an equal number of assets. The transaction was classified as a horizontal merger,” said the CTC.

On the transaction involving the 100 percent shareholding acquisition of Cut Rag Processors by Gold Leaf Holdings, the commission said the acquiring firm is a registered investment trust company, which was incorporated in Mauritius in May 2018. -@okazunga.