The Competition Authority has entered into mutual settlement agreements with BOMAID and AON Holdings

This is after BOMAID and AON Holdings respectively filed notices of appeal to the competition Commission against the determination of the Authority in mergers notifications they filed. AON Holdings and BOMAID were both aggrieved by the determination of the Authority.

The Authority had in December 2012 rejected the merger notifications brought by AON and BOMAID citing public interest concerns and directed that in each of the transaction if any party wanted to sell shares held by CEDA Venture Capital they should sell to citizens that are not part of the current shareholding to broaden citizen empowerment.

The settlement agreements as signed by the Authority and each party contain a condition that in the event either Aon Holdings or BOMAID disposes of shares acquired from CEDA Venture Capital Fund when it exits its investment, both parties should offer those shares first to a Motswana partner or partners. The transactions as notified by the parties have, after the signing of the settlement agreements have been implemented.

The mutual settlement means the matter will not come before the Competition Commission for adjudication. In addition, the effect of the transaction is that the transactions that were initially rejected by the Authority can now be implemented under the terms of the settlement.

For further information contact: Gideon Nkala: 71900900