CFTC engages public in assessing acquisition of Glenae Poultry Farm by Go Fresh Limited

* To assist the Commission in establishing the impact of the proposed transaction on competition and the economy of Malawi

* The likelihood that the transaction would result in the parties’ having dominant market power in this market

By Duncan Mlanjira

Under its mandate in regulating business companies’ mergers and acquisitions the Competition & Fair Trading Commission (CFTC) is assessing a notification it received regarding a proposal of acquisition of part of assets of Glenae Poultry Farm by Go Fresh Limited.

Thus CTFC is now engaging the public to declare information on the following:

* Players in the relevant market; number, names and addresses;

* Market share estimates of the Parties to the transaction as compared to their competitors;

* Ease of entry/exit from into the market in which the target undertaking operates;

* Levels of imports in the relevant markets in which the target undertaking operates;

* The likelihood that the transaction would result in the parties’ having dominant market power in this market;

* Likelihood of countervailing power by either competitors or consumers;

* Probable public interest concerns;

* Probable efficiencies that the transaction will generate on the markets and the economy for the benefit of consumers;

* Level of vertical linkages and agreements in the sector;

* Growth trends of the sector and the impact of the proposed transaction on industry growth;

* Whether the transaction should be approved or not approved by the Commission, and your reasons for the same; and

* Any other relevant information regarding the transaction.

“The foregoing information will assist the Commission in establishing the impact of the proposed transaction on competition and the economy of Malawi,” said Executive Director, Lloyds Vincent Nkhoma in a public notice.

As a Government agency established under the Competition and Fair Trading Act, Cap 48:09 of the Laws of Malawi, CFTC is mandated to regulate, monitor, control and prevent acts or conducts which are likely to adversely affect competition and fair trading in Malawi.

“In pursuance of this mandate, the Commission, among other functions, is charged with the responsibility of regulating mergers and acquisitions,” says the statement in pursuant to Section 36 of the Competition and Fair Trading Act (CFTA).

“Accordingly, the Commission assesses merger transactions upon application by parties to establish the impact of the same on competition in the relevant markets and the economy of Malawi.

“The Commission may approve, disapprove or approve with conditions depending on the findings made during its assessments.”

Thus in pursuant to Section Section 37 of the CFTA, has launched investigations to assess the likely effect of the transaction on competition in the relevant markets.  

CFTC says according to the information submitted by Glenae Poultry Farm and Go Fresh Limited, the acquirer is a Malawian company whose registered office is P.O. Box 407 Lilongwe involved mainly in the supply of meat and meat products including chicken and sausages.

Similarly, Glenae is also a Malawian company involved in the poultry farming business — involved in the production and distribution of meat and meat products.

Its registered offices have been given as Conforzi Plantation Limited, P.O. Box 1, Thyolo (with offices in Limbe).

“The Parties have also submitted that the proposed transaction will involve acquisition of part of assets of Glenae Poultry Farm by Go Fresh Limited, extending the latter’s operations into the production of meat and meat products. “The proposed transaction is notifiable under the CFTA and is, therefore, subject to review by the Commission to establish the likely impact on competition in the relevant market.

“In view of the foregoing, we kindly request the general public to provide information regarding the proposed transaction.

“Please, be assured that all the information submitted shall be treated with the strictest confidentiality and will be used solely for the purpose of this inquiry.”

Nkhoma added that the deadline for the feedback is Friday, May 31, 2024 and if the public need clarifications or further details concerning any aspect of this request, they are advised to contact public relations officer, Innocent Helema through +265 880 725 075 or to call CFTC’s Toll-free Line 2489 or email innocent.helema@cftc.mw or competitioncommission@cftc.mw.