As required under Section 36 of the Competition and Fair Trading Act, the Competition and Fair Trading Commission has received an application for authorization of a proposed acquisition of assets of Kulimba Cement Limited (hereinafter referred to as “Kulimba Cement”) by Lafarge Cement (Malawi) Limited (hereinafter referred to as “Lafarge Cement”) and together referred to as “the parties”.
According to the information submitted by the parties, the acquiring undertaking, Lafarge Cement, is a subsidiary of LafargeHolcim, a limited liability firm in the business of building materials incorporated under the laws of Switzerland and has its headquarters in Paris, France. The key products offered by LafargeHolcim are cement, construction aggregates, asphalt production and concrete. In addition, the company operates in eighty (80) countries. LafargeHolcim has seventy-five thousand (75,000) employees worldwide, more than two thousand and three hundred (2300) plants (including one thousand four hundred and forty-eight (1,448) ready mix concrete sites and over two hundred and seventy (270) cement plants. In Malawi, LafargeHolcim trades as Lafarge Cement (Malawi) Limited and has its headquarters in Makata heavy industrial area, Blantyre.
Further, it has been submitted by the parties that the target undertaking, Kulimba Cement, is a limited liability company that was registered on the 23rd day of March 2011. The current shareholders of Kulimba Cement are Mr. Harridas Magecha and Mrs Jaya Magecha, and over the years, the company has been engaged in the business of cement production. Their headquarters and production site is located at Lunzu, Blantyre.
The parties further submitted that they do not intend that they merge their operations, neither do they intend that Lafarge Cement (Malawi) Limited should take over the operations of Kulimba Cement. The transaction is restricted to the purchase of the assets by Lafarge Cement.
In view of the foregoing, and as required under Section 37 of the Competition and Fair Trading Act, the Commission kindly requests the general public, players, consumers and other stakeholders in the cement industry to provide information on the developments and operations of the industry, and prospects that are likely to emerge in light of this transaction. Further, the Commission will appreciate information on the following:
- The competitors to the merging parties
- Market share estimates of the players in various markets in the industry
- Barriers to entry into the cement markets
- Level of import competition in Malawi’s cement markets
- Whether the transaction would result in the merged parties having dominant market power in the markets
- Likely benefits of the transaction to Malawi economy
- Any public concerns associated with the transaction
The information that is going to be submitted to the Commission will assist in assessing the impact of the proposed transaction on competition and the economy of Malawi, and will help to determine whether or not the Commission should authorize the transaction. Please, be assured that all the information shall be treated with the strictest confidentiality and will be used only for the purpose of this inquiry.
The Commission will be grateful to receive your feedback by Friday, 17th January, 2020. If you need clarifications or further details concerning any aspect of this request, please, contact the Commission through Senior Competition Analyst Fexter Katungwe on phone number +265 997 233 805 or email [email protected].