Sixty companies in the region submitted requests for mergers to the COMESA Competition Commission (CCC) last year. Notable among those considered was that of Uber and Careem ride hailing companies.
In that transaction, the parties undertook to create a specific division for research and development to enhance service delivery to the consumers. According to CCC Chief Executive Officer Mr George Lipimile, the parties undertook to enhance the security features of their services for the benefit of the consumers and to create more employment in the Common Market.
“On that basis, the Commission approved the merger,” Mr Lipimile said.
Mergers and acquisitions are an important avenue of foreign direct investments (FDI) especially in current times when green field investments have been dwindling. Hence, the Commission ensures that the FDIs that come in form of mergers and acquisitions do not frustrate local and incumbent investments and that it benefits the Common Market and its inhabitants in general.
The CCC is an autonomous institution established in 2004 under Article 6 of the COMESA Competition Regulations. Its principal objectives are: to prevent anti-competitive conduct thereby encouraging competition and efficiency in business, resulting in a greater choice or consumers in price, quality and service; and to ensure the interests and welfare of consumers are adequately protected in their dealings with producers and sellers.