The Competition and Consumer Authority (CCA) of Botswana recently announced its decision regarding the proposed acquisition of Lot 68277 Gaborone by Barloworld Equipment Botswana (Pty) Ltd from Treesource (Pty) Ltd, granting approval on 04 March 2024, following a comprehensive assessment of the merger under the Competition Act 2018.
The proposed transaction, brought under the spotlight by section 53(4)(a)(ii) of the Act, was notified to the Authority on 06 February 2024, triggering a thorough merger assessment that concluded within a month. The CCA’s decision signifies a significant milestone in the ongoing business landscape of Botswana.
Barloworld Equipment Botswana (Pty) Ltd, the acquiring enterprise, is a Botswana-incorporated company controlled by Barloworld Equipment UK, a United Kingdom-based entity. The target enterprise, Treesource (Pty) Ltd, is also Botswana-incorporated and operates as a property holding company. The proposed acquisition involves the sale of an industrial plot in Gaborone, highlighting Barloworld’s strategic expansion plans within the region.
Upon evaluating the relevant markets, the CCA’s analysis indicated a stable competitive landscape characterised by well-established players in the commercial property sector. Notable competitors such as New African Properties Limited, The Far Property, RDC Properties Limited, and Turnstar Holdings Limited are expected to exert competitive pressure on the acquiring enterprise post-merger.
The transaction’s competitive analysis further revealed that Barloworld and Treesource operate in distinct markets, thereby mitigating concerns related to a substantial lessening of competition. Additionally, the CCA found no indication that the proposed merger would result in the acquisition of a dominant position in the relevant market.
In terms of public interest considerations, the Authority determined that the proposed acquisition would not pose any detrimental effects on public interest matters in Botswana. The decision underscores the CCA’s commitment to safeguarding competition while ensuring the continuity of services and promoting market efficiency.
As a result of its assessment, the CCA unconditionally approved the proposed acquisition, emphasising that the structure of the relevant market would remain largely unchanged post-implementation. However, the approval does not exempt the merging parties from complying with other mandatory statutory approvals or processes stipulated under the Laws of Botswana.
The approval represents a significant endorsement of Barloworld Equipment Botswana’s growth strategy and underscores Treesource’s strategic divestment. It also highlights Botswana’s commitment to fostering a competitive business environment that encourages investment and innovation.
