The Namibia Competition Commission (NaCC) says it has approved the acquisition of sole ownership and control over the Ford Automotive Dealership Business of Indongo Ford (Pty) Ltd in Oshakati by Diroyal Motors.
The transaction entails Diroyal Motors (SWA) (Pty) Ltd, an indirect subsidiary of the Bidvest Group Limited, acquiring sole ownership of and control over the Ford Automotive Dealership.
The NaCC competition analysis reveals that the proposed transaction will result in a reduction in the number of dealerships, however, there remain sufficient competitors to merging parties’ post-merger to act as a competitive constraint.
“Based on investigation the merged entity will not substantially lessen or prevent competition and will not significantly strengthen the merged entity market share that is likely to result in the merged entity, strengthening its dominance or acquiring a dominant position,” said NaCC Corporate Communications Practitioner Dina //Gowases.
//Gowases emphasised that the proposed transaction will have no negative effect on employment as there will be no job losses, including redundancies and retrenchments as a result of the implementation of the merger.
“All twenty-one (21) employees that form part of the Ford Automotive Dealership Business of Indongo Ford will be re-employed by the acquiring undertaking. No other public interest concerns arise from the implementation of the proposed transaction,” she added.
The Primary Target Undertaking is the Ford Automotive Dealership Business traded under Indongo Ford (Pty) Ltd (Indongo Ford) in Oshakati.
“The Ford Automotive Dealership Business does not directly or indirectly control any other undertakings, it sells and distributes new and used Ford branded vehicles and provides maintenance and repair services and spare parts in Oshakati,” said NaCC.
Meanwhile, the Primary Acquiring Undertaking, Diroyal Motors (SWA) (Pty) Ltd (Diroyal Motors) is a Namibia registered undertaking.
“It is directly owned by Bidvest Namibia Automotive (Pty) Ltd (Bidvest Namibia Automotive) a subsidiary of Bidvest Namibia Ltd (Bidvest Namibia). Bidvest Namibia is ultimately owned and controlled by The Bidvest Group Limited, a South African company, registered on the Johannesburg Stock Exchange,” noted the NaCC.
The Bidvest Group is a diversified group involved in different sectors of the economy. Diroyal Motors does not directly or indirectly control any other undertaking. It currently sells and distributes new and used Ford, Jaguar, Land Rover and Mazda, Nissan branded vehicles and provides maintenance and repair services and spare parts.
This comes as on 04 April 2023, the Commission received a notification in terms of Section 44(1) of the Competition Act No. 2 of 2003, on the merger.
