Spar deal gets nod

| Monday June 16, 2014 06:59

In a statement, the Authority announced that it has determined to conditionally authorise the proposed transaction on the grounds that the analysis of the facts of the case showed that there were no substantive competition concerns that would arise in the grocery retailing market in Gaborone.The CA says that the proposed transaction is unlikely to result in substantial lessening of competition, nor endanger the continuity of service, due to the existence of post-merger competitive pressure posed by an existing dominant player (Choppies Enterprises) and South African chain stores, such as Pick n Pay and Shoprite. The entry of Spar is anticipated to provide effective competition at Rail Park Mall by way of offering a feasible alternative for low cost substitutability with respect to existing competitors. The Tsetseng Retail Group has made a commitment that it would continue to support local producers by sourcing supplies from them and also employ all the existing staff on their existing terms and conditions of service.