On the 21st March 2022, the Secretariat received an application for authorization of a proposed acquisition of 100% equity shares in Peoples Trading Centre (PTC) Limited, a subsidiary of Press Corporation Plc, by Tafika Holdings Limited.
According to the information submitted by the parties, Tafika Holdings Limited, is a South African based company with business operations in soft commodities trading and distribution. The company supplies products such as macadamia nuts, maize, soya beans, rice, pepper, cotton and tea. People’s Trading Centre is a subsidiary of Press Corporation PLC. Press Corporation PLC is a public company incorporated in Malawi; and is listed on the Malawi Stock Exchange. Being the largest holding company in Malawi, According to the information submitted by the Parties, the proposed transaction involves Tafika Holdings acquiring 100% equity stake in PTC currently held by Press Corporation (99%) and Press Nominees Limited (1%).
According to the information gathered during the investigations, the transaction will not result in a change of market structure by reducing the number of players on the market. Further, it was established that the transaction will not create a dominant player nor will it create a vigorous player. It was also established that PTC was not thriving on the market and was at the verge of collapsing hence this transaction was timely to save a failing firm. No negative public concerns were registered during the merger investigations.
Following deliberations, the Commission authorized the proposed acquisition of 100% shares in People’s Trading Centre from Press Corporation PLC by Tafika Holdings Limited.