CTC probes CBZ’s bid for more stake in First Mutual Holdings

THE Competition and Tariff Commission (CTC) is investigating the proposed acquisition of additional stake in First Mutual Holdings Limited by CBZ Holdings Limited.

At present, CBZ Holdings controls over 31 percent shareholding in First Mutual Holdings.

In a public notice released this week, CTC said it has commenced the examination of the proposed acquisition of additional shareholding in First Mutual by CBZ.

“Notification of the proposed transaction was done in compliance with one of the commission’s conditions set out in the order approving the acquisition of 31,22 percent shareholding by CBZ Holdings Limited in First Mutual Holdings Limited in 2022.

“The merger was approved on conditions that CBZ Holdings Limited shall notify the commission of any intention to increase its stake in First Mutual Holdings Limited,” it said.

The commission intends to determine whether the proposed acquisition will likely substantially lessen the degree of competition in Zimbabwe or any substantial part of Zimbabwe or is likely to result in a monopoly situation which is or will be contrary to public interest as provided in section 32(4) of the Act.

“The examination also seeks to ascertain how the parties to the transaction, and other related players operate in the market currently and envisage how the parties to the transaction will operate should the transaction be approved by CTC,” said the commission.

In view of the proposed deal, CTC is advising all interested stakeholders and the public to submit their written representation to the commission stating how they would be affected by the planned transaction under investigation.

CBZ Holdings Limited is a Zimbabwe Stock Exchange-listed financial services company with subsidiaries in the banking, insurance broking, short-term insurance, life assurance, microfinance, property development, maintenance, and management.

First Mutual Holdings Limited is also an integrated financial services entity with subsidiaries in the short-term insurance, life insurance, reinsurance, medical aid, and healthcare services as well as property development, maintenance, and management.-ebusinessweekly