Job loses as transport companies merge

Merger public service transport operators has potential to create sustainable employment and enhance professional ism in the sector
Merger public service transport operators has potential to create sustainable employment and enhance professional ism in the sector

The Competition Authority has approved the merger of Mulbridge Transport (Pty) Ltd with Transport Holdings Limited, said a press statement issued yesterday. The merger is likely to result in job loses.

“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.

Editor's Comment
Happy Independence!

We are 56 years old and what do we have to show for it? Looking at where Botswana started and where it is today, there are a lot of developments, but whether the developments match the number of years we have enjoyed as a country is a topic for another day.The fact that cannot be denied is we have seen major developments, but we are still lacking in several pertinent areas.Our beautiful country imports almost everything. We import fuel, food,...

Have a Story? Send Us a tip
arrow up