Seven Months see 38 Mergers

During the first seven months of the 2016/2017 fiscal year, 38 companies have carried out mergers. Out of the 38 mergers 10 of them were facilitated by the Common Market for Eastern and Southern Africa(COMESA). The remaining 28 of the mergers were cross border, as well as between local companies.

The Ethiopian Trade Competition and Consumers’ Protection Authority approved the mergers. The Authority undertook an inquiry on the proposed merger transactions. The Authority mainly gave emphasis to companies with a capital of more than 30 million Br.

The acquisition of Red Fox International Business Plc, a cement company, by National Cement was one of the mergers that took place within the last seven months.

The Authority’s concern is primarily whether the proposed transaction between the parties would or is likely to have any effect of substantially preventing or lessening competition, and whether it is contrary to the public interest in the market.


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