In a statement, the authority said it had determined to authorise the proposed transaction on the grounds that the facts, analysis and conclusions of the report show that the merger is not likely to give rise to substantive competition concerns in the distribution of fuel and lubricants markets in Botswana:
"This is given the fact that the market share of the merged entity in the distribution of fuel market at 27 percent is not significantly above the dominance threshold of 25 percent. Moreover, the market characteristics indicate that the behaviour of the firm post-merger, would be easily constraint if it were to try to abuse its dominance.However, considering the increasing levels of unemployment in Botswana, the authority resolved to authorise the proposed transaction on condition that the level of employment within Shell Botswana will not be negatively affected as a result of the transaction," read the statement. The CA also encouraged Vivo Energy to present more opportunities for enterprises trading in the downstream market as fuel retailers through increased capital injection and by providing more start-up capital to aspiring entrepreneurs.
