The Commission considered an application from Libertas General Insurance Company regarding the proposed acquisition of its business by Victoria Forex Bureau Limited. The transaction involved the acquisition of 99% of the issued share capital of Libertas by Victoria Forex Bureau.
According to Section 35(1) and Section 35(2)(a) of the Competition and Fair Trading Act (CFTA), this transaction constituted a merger. Therefore, the Commission instituted investigations to assess the transaction’s impact on competition and the Malawi economy.
After its assessment, the Commission considered that the post-merger the structure of the relevant market will not be affected by the proposed transaction as the merging parties’ activities are entirely distinct.
The Commission noted that the transaction will not change the existing market structure and will not lead to the creation of a dominant player. Further, the investigation did not register any negative public concerns against this transaction.
Following deliberations, the Commission authorized the acquisition of Libertas General Insurance Company by Victoria Forex Bureau Limited.