CCA approves Puma Energy takeover by Singapore company
The Competition and Consumer Authority (CCA) has unconditionally approved the takeover of Puma Energy by Singapore-based Trafigura Ltd.
Puma Energy, which is also incorporated under Singaporean laws, is the parent company of Puma Energy Botswana, an organisation in the business of distributing fuel products.
Puma Energy Botswana also owns storage facilities in Gaborone and operates a network of filling stations across the country.
The Authority noted that the transaction is not likely to result in the prevention or substantial lessening of competition or endanger the continuity of the services offered in the relevant market.
In addition, it was noted that no public interest concerns were raised.
In April, Trafigura alerted CCA of its intention to assume total control of Puma Energy.
Trafigura is an independent commodity trader, specialising in the supply and transport of oil and petroleum, mineral, and metal commodities globally.
The company is an already existing shareholder in Puma Energy and reportedly holds a 55.5 percent non-control stake in the target enterprise.
For her part, CCA Chief Executive Officer (CEO), Tebelelo Pule explained that an in-depth assessment of the proposed transaction revealed the parties do not compete in the same product market.
“Though the acquirer is not operational in any of the markets in Botswana, it is imperative to note that Trafigura is said to be a leading independent commodity trader, specializing in the supply and transport of oil and petroleum, mineral and metal commodities globally,” said Pule.
She further pointed out that from the description of the markets of the two entities, it can be deduced there is no product overlap in their activities.
“Therefore, the Authority maintains that it is not necessary to reach a definitive view on the exact scope of the product market as the market structure is not expected to change post-implementation of the proposed transaction,” she said.
Regarding competitive analysis and public interest, Pule said their assessment did not reveal any substantial lessening of competition concerns.
“This transaction is merely an increase in shareholding by an entity that already has a direct shareholding in the target enterprise,” she concluded.