The Competition and Fair Trading Commission held its 36th Meeting on 31st July, 2013 in the Board Room of the Competition and Fair Trading Commission Offices in Lilongwe. The Commission, among other, things considered cases on alleged anti-competitive business practices which were brought before the Commission for adjudication in accordance with Section 8 of the Competition and Fair Trading Act. Application for Acquisition of 100 Percent Shareholding in International Commercial Bank Limited by First Merchant Bank Limited First Merchant Bank Limited (FBM) submitted an application to the Competition and Fair Trading Commission for authorisation of acquisition of 100 % shareholding in International Commercial Bank Limited (ICB) from ICB Financial Group Holdings AG. It was submitted to the Commission that the transaction was part of a regional transaction involving the acquisition of ICB Financial Group Holdings AG’s subsidiaries in Malawi, Mozambique and Zambia. The Commission noted that ICB has the least market share in the banking industry in Malawi and its acquisition would not likely increase FBM’s market share. It was also noted that ICB was facing capitalization problems and was falling short of meeting the minimum prudential capital requirement as set by the Reserve Bank of Malawi. Based on this information, the Commission determined that it is less likely that the transaction would lessen competition in the banking industry in Malawi. The transaction will, however, save ICB from possible liquidation and, therefore, enable customers of ICB to continue enjoying the services that the bank is rendering as well as saving some jobs. The Commission, therefore, concluded that the proposed transaction has more advantages than disadvantages. Hence, the acquisition was authorised.
Posted on: Tue, 13 Aug 2013 12:33:56 +0000
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