a tripartite report - Unctad

200 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE
Table 7 below summarizes the Commission’s determinations
of mergers and acquisitions since 1999.
Table 7: Summarized Commission Determinations on Mergers Since 1999
Commission
Determination
No. of Merger Cases
1999-2005 2006-2009 2010-2011
2012
(to date)
Total Percentage
Unconditional Approval 52 33 11 1 97 71 per cent
Conditional Approval 11 11 5 0 27 20 per cent
Not Challenged 6 5 0 0 11 8 per cent
Rejected/ Prohibited 2 0 0 0 2 1 per cent
Totals 71 49 16 1 137 100 per cent
The socio-economic impact of the Commission’s
merger control activities has also been notable. In
of competition policy and law in Zimbabwe that
was undertaken in 2006 206 , it was found that spe-
the mergers that were conditionally approved by
the Commission included the following:
utilization (Rothmans of Pall Mall/British American
Tobacco merger, BP Zimbabwe/Castrol Zimbabwe
merger, Zimboard Products/PG Bison Mauritius
merger);
restoration of plant productivity (Portland
Holdings/Pretoria Portland Cement merger,
Zimboard Products/PG Bison Mauritius merger);
of requirements and leveraging advantage
(Rothmans of Pall Mall/British American Tobacco
merger, Shashi Private Hospital/PSMI merger);
distribution (Rothmans of Pall Mall/British
American Tobacco merger);
increased competence and maintenance of
market share through technical and commercial
support (Portland Holdings/Pretoria Portland
Cement merger);
introduction of self-reliance in input requirements
(Delta Beverages/Mr Juicy merger);
improvement in product quality (Zimboard
Products/PG Bison Mauritius merger); and
effective turnaround from operating loss to
Zimboard Products/PG Bison
Mauritius merger).
Subsequent conditionally approved mergers also
e.g., the more recently the Total Zimbabwe/Mobil
Oil merger, the Schweppes Zimbabwe/Delta Beverages
merger, the Burley Marketing Zimbabwe/Farma-Rama
merger, the West Beverages/Starafricacorporation
merger, and the Olivine Holdings/Cotton
Company of Zimbabwe merger.
It can therefore safely be concluded that there are
many documented success stories in the Commission’s
handling of competition cases. The socioeconomic
impact of the Commission’s effective
implementation of competition policy and law in
Zimbabwe, through its handling of competition
cases, has been notable. The Commission has
tackled the major competition concerns in Zim-
3.8.3 Priorities and Management
Currently, the focus is mainly on mergers and is
being managed with the limited context the CTC
operates. There is now need to open horizons and
venture into area of cartels and abuse of dominance.
To do this, the enabling legislation has to
be re worked to ensure smooth take off based on
best practices.
4.0 LIMITS OF COMPETITION
POLICY: EXEMPTIONS
AND SPECIAL REGULATORY
REGIMES
4.1 Economy-wide Exemptions and
Special Treatments
Section 3 (1) of the ZCA provides that it applies
to all economic activities within or having
an effect within the Republic of Zimbabwe