THE Board of Commissioners of the Competition and Consumer Protection Commission (CCPC) has rejected a merger application by Toyota Tsusho Corporation (TTC) to acquire shares in CFAO's Pinault Printemps Redoute (PPR Group).
This is on grounds that it had established there were competition concerns likely to emanate from the merger once approved.
During the 33rd extra-ordinary board meeting held on January 23, 2013, at the CCPC head office in Lusaka, the Board of Commissioners
noted that from the investigations conducted by the Commission, it was clear that merger was not in the interest of fair business practices.
"On the basis of the findings and analysis, the Board of Commissioners found that the planned acquisition of shares by Toyota Tsusho in CFAO was likely to lead to substantial lessening of competition on the Zambian market," executive director, Chilufya Sampa said.
According to a statement released by CCPC public relations officer Hanford Chaaba, the Board received a merger application from the party lawyers concerning the proposed merger between TTC and PPR Group.
The merger would have resulted in the indirect control of CFAO Zambia Limited and Vehicle Centre Zambia Limited (Zambian subsidiaries of (CFAO) by TTC.