CFTC probes FMB’s acquisition of OBM

 

The Competition and Fair Trading Commission (CFTC) is probing the impact of the takeover of Opportunity Bank of Malawi (OBM) by Malawi Stock Exchange (MSE)-listed FMB plc on competition.

CFTC’s move comes after FMB finalised the notification process to fully take over OBM.

In line with the Competition and Fair Trading Act, CFTC is mandated to review mergers and acquisitions and assess their impact on competition.

Signed the statement: Malonda

A press statement signed by CFTC executive director Wezi Malonda said FMB has applied to the competition body for approval to takeover OBM.

Reads the statement in part: “In accordance with Section 37 of the Competition and Fair Trading Act, Chapter 48:09 of the Laws of Malawi, the commission is required to conduct an assessment of the likely impact of the proposed transaction on competition and the economy.

“The commission, therefore, is mandated to obtain representations from interested parties on their views of the transaction, particularly the proposed transaction’s effects on competition within the country.”

In an interview, CFTC director of consumer welfare and education Lewis Kulisewa said the institution has up to 45 days to make a determination on the transaction.

FMB recently also completed acquisition of controlling stake in Barclays Bank Zimbabwe Limited. n

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