Conditions met for Meger of two Zim stock feed manufactures

Concerns were raised over a possible monopoly as a result of the merger. After further assessments by the competition and tariff competition, its been given the green light.

National Foods, a Zimbabwe Stock Exchange-listed company, has reportedly restructured its proposed $10 million merger with fellow stock feed manufacturer, Profeeds to suit conditions acceptable to the Competition and Tariff Commission.

This comes after CTC blocked the previous proposed transaction which involved two of the country’s biggest stock feed manufacturing firms owned by one diversified group, Innscor Africa Limited.

Concerns were raised over the alleged monopolistic structure of the proposed merger between the two stock feed manufacturing giants, National Foods and Profeeds. Mike Lashbrook told Business Times that the company will continue working with CTC to reach a common understanding which would see the transaction going through.

“With respect to our proposed transaction with Profeeds we continue to work with the CTC to find a format that achieves our objectives and is acceptable to the CTC.

“National Foods’’ stock feed division and Profeeds continue to function as separate entities, with our respective brands competing in the market,” said Lashbrook.

According to the structure, which was blocked by CTC, the two companies wanted to set up a new stock feed company which was to be run as a separate entity. African Feed Mills Private Limited, the new company was to be 60 percent owned by Profeeds while National Foods took the balance.

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Read complete article: Business Times