The Competition and Fair Trading Commission (“the Commission”) is a Government agency established under the Competition and Fair Trading Act, Cap 48:09 of the Laws of Malawi. The Commission is mandated to regulate, monitor, control and prevent acts or conducts which are likely to adversely affect competition and fair trading in Malawi.
In pursuance of this mandate, the Commission, among other functions, is charged with the responsibility to regulate mergers and acquisitions. Accordingly, the Commission assesses merger transactions upon application by parties to establish impact of the same on competition in the relevant markets and the economy of Malawi. The Commission may approve, disapprove or approve with conditions depending on the findings made during its assessments.
It is against this background that the Commission is soliciting views from the insurance market players upstream and downstream, consumers, regulatory institutions, other interested parties and the general public. This follows a request that the Commission has received from the COMESA Competition Commission (CCC) to assist them in collecting views from various stakeholders in Malawi regarding the proposed acquisition of aYo Holdings Limited (“the target undertaking”) by Sanlam Emerging Markets (“the acquiring undertaking”) on the likely effect of the proposed transaction on competition in the relevant market, consumer welfare and the economy in general.
This information will assist the Commission in its assessment as Malawi is listed among the Member States that will be affected or is likely to be affected by the transaction.
According to the notification documents from CCC, the Commission has been informed that the acquiring undertaking operates in Malawi through NICO Life Insurance and the target undertaking does not operate in the country. Pursuant to the implementation of the Proposed Transaction, the acquiring undertaking and MTN Dubai will each hold 50% of the shares of the target undertaking.
The Commission’s primary concern is to determine whether the merger is likely to substantially lessen or prevent competition on the Malawi market.
Should you have views on the said transaction, please, contact our Public Relations Officer Mr. Innocent Helema on phone number +265 880 725 075 or email [email protected] or [email protected] at the earliest convenience and preferably not later than 2nd July, 2022.
ACTING EXECUTIVE DIRECTOR