On 7th March, 2022, CFTC received an application for authorization of acquisition of a poultry production and processing business of Food and Feed Wholesalers Limited, t/a Kapani Enterprises by Go Fresh Limited.

Go Fresh Limited, is a new-start-up company registered under the laws of Malawi in 2019. The company is actively involved in the supply of meat and meat products including chicken on retail. The company also supplies Fast Moving Consumer Goods (FMCG) and runs a supermarket/butchery at old Cold Storage premises along Likuni road.

The target undertaking, on the other hand is Food and Feed Wholesalers Ltd, trading as Kapani Supermarkets. The company was established in 1998, and is one of the largest meat processing plants in Malawi, operating an abattoir, meat-processing factory for the processing of beef and sheep, etc. The company is also actively involved in broiler production and processing and supplies to the markets both dressed chickens and live grown chickens.

Among others, the following were the findings of the Commission’s investigations:

  • Currently the chicken market in Malawi is controlled by Central Poultry with around 49% of market share.
  • The combined market shares for the merged entity: Go Fresh Limited + Kapani, would be 9%. This implies that the transaction on its own will not change the structure of the market nor create a dominant player.
  • Go Fresh is affiliated to Central Poultry. The proposed transaction would lead to accumulation of 58% market shares by Central Poultry. However, it was established that Kapani poultry business was failing and so the acquisition would save a failing firm.

Following deliberations, the Commission resolved to authorise the proposed acquisition of Kapani’s Prime Poultry and Mchezi Abattoir businesses by Go Fresh Limited.