CFTC received an application for the acquisition of Dimakis Chickens Limited and part of Charles Stewart’s business assets by Central Poultry (2000) Ltd on 19th March, 2021. This followed investigations which revealed that Central Poultry had acquired Dimakis Chickens in 2013 and part of Charles Stewart’s business assets in 2016 without prior authorization from the Commission which is a contravention of Section 35 of the Competition and Fair Trading Act (CFTA).
The investigations concluded that the transactions did not result in creation of a dominant player and that Charles Stewart did not exit the market as it is still operating its poultry business. Further, the transactions did not substantially lessen competition in the relevant markets.
As a result, the proposed acquisition of Dimakis Chickens and part of Charles Stewart’s business assets was authorised by the Commission with the following conditions:
- That Central Poultry should fully operate the acquired business units at Dimakis and Charles Stewart to offer the poultry services and employment to the community;
- That Central Poultry should not engage in any anti-competitive trade practices in the poultry sector;
- That Central Poultry should devise deliberate pro-competitive policies to ensure empowerment and growth of small and medium enterprises along its value chains.