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.

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