BY BUSINESS EDITOR
MATSAPHA – The Eswatini Competition Commission (COMPCO) has approved the acquisition by Jose Emidio Rodrigues (JOSE) and Pedro Miguel Vaz Rodrigues (PEDRO) of 100% of the issued shares of Zulwini Holdings Limited (Zulwini Holdings).
COMPCO said the acquirers Jose and Pedro are entrepreneurs and businessmen in Eswatini. Together, they have several years’ experience in successfully running and managing companies in Eswatini.
Currently, they are directors and shareholders in Rod Industries (Pty) Ltd (a textile manufacturing company), Matsapha Repair Centre (Pty) Ltd (a workshop and panel beating company), and Agritech (Pty) Ltd (a tractor dealership and workshop).
Jose and Pedro intend to invest in the Hospitality and Tourism Industry and expand their business portfolio to include the provision of hospitality and related services.
The target firm, Zulwini Holdings, is a limited liability company duly registered and incorporated in accordance with the laws of Eswatini. The target firm used to trade as Timbali Lodge, however, due to the decline in the hospitality & tourism industry, it made an application to revoke its trading licence as an accommodation establishment.
Zulwini Holdings operated a housing estate, hotelier and a caravan park that offered 18 executive and 5 luxury suites and 5 self-catering family units. It also offered a restaurant, conference facilities as well as a venue for weddings, private parties, and functions.
COMPCO said they considered the products of the firms and concluded that the relevant market is the provision of hospitality and related services in the Mbabane – Manzini corridor.
In its analysis, the Commission considered the activities of the merging parties and found that there are no product overlaps in the relevant market since the acquirers are not involved as shareholders in any undertaking in the hospitality & tourism industry, an industry the target firm belongs to. As such the transaction is categorized as a phase 1 merger.
“Post-merger, the market shares in the relevant market and market concentration will not be altered such that the structure of the market will remain unchanged.
Countervailing power and barriers to entry will not be affected therefore the transaction is unlikely to result in the substantial lessening or prevention of competition. The Commission approved the transaction without conditions,” added the commission.
