Job loses as transport companies merge
Staff Writer | Thursday February 12, 2015 12:35
“The Authority determined to conditionally authorise the proposed transaction. Firstly, the analysis of the facts of the merger assessments showed that there were no substantial competition concerns that will arise in the market for consolidation transportation services in Botswana, given the fact that: The proposed transaction is not likely to result in a substantial lessening of competition, nor endanger the continuity of service, due to sufficient post-merger competitive constraints posed by other competitors such as Value Logistics and GMR Freights; and the implementation of the proposed merger is not expected to result in the merged entity attaining a dominant position”.
The statement further said that the Authority took cognisance of the fact that the proposed transaction gives rise to public interest concerns under section 59(2) of the Competition Act. The proposed merger is expected to result in seven unskilled employees being retrenched.
“Taking the public interest concern and pursuant to the provisions of section 55 of the Competition Act of Botswana, the Authority approved the proposed acquisition with conditions that: The merged entity should ensure that proper procedures are followed in line with the labour laws of Botswana to ensure that every employee receives the due severance benefits and wherever reasonably possible they will endeavour to create employment for the concerned employees by negotiating with their suppliers and customers; and the merged entity should revert to the Competition Authority within 12 months, with a status report regarding the status of the concerned employees.
Competition Authority cautioned that, as stated under section 66 of the Act, “this approval does not override or negate any other mandatory statutory approvals or processes that any of the parties to this merger must comply with under the Laws of Botswana”.