Mmegi

NAP appeals blocked P20m Maun deal

Upcoming: The NAP has an indirect interest in the planned Delta Palms Mall in Maun PIC: deltapalms.com
Upcoming: The NAP has an indirect interest in the planned Delta Palms Mall in Maun PIC: deltapalms.com

Botswana Stock Exchange-listed property group, New African Properties (NAP) is appealing a recent Competition and Consumer Authority (CCA) decision which stopped the purchase of a retail centre in Maun, BusinessWeek has established.

The competition watchdog recently blocked NAP from finalising the P20 million deal saying the transaction raised 'competition issues' as NAP already has a robust retail presence in Maun. The CCA ruled that the proposed transaction is likely to result in a substantial lessening of competition due to the removal of a competitor in the form of the target enterprise.

The CCA said its assessment of the proposed deal had shown that competition concerns would arise in the rental retail space in Maun should NAP be allowed to conclude its transaction. Also, the assessment done by CCA found cross-shareholding between an upcoming retail centre in Maun called Delta Palms Mall and NAP. The cross-shareholding is through a common shareholder called Cash Bazaar Holdings, which holds 19.9% equity in NAP.

Editor's Comment
Tana project a welcome development

Whilst the project received mixed reactions from members of the public, the project is indeed a welcome development, which needs to be implemented as soon as possible. Many shared their opinion, with those against the project decrying that if implemented, it will kill the already struggling public transport industry.Many countries around the world have state-run public transport, and those who have travelled to such countries will give testimony...

Have a Story? Send Us a tip
arrow up