PIONEER FOODS ACQUIRES CONTROL STAKE OF BOKOMO BOTSWANA

Competition and Consumer Authority (CCA) has approved the acquisition of the issued shareholding in Bokomo Botswana by Pioneer Foods, which increased its stake to 51 percent.

Bokomo, which currently sells all its products in Botswana only, was established in 2003. The company had issued a one percent share capital which now has made pioneer foods to be the major controlling shareholder. CCA chief Executive officer, Tebelelo Pule stated that there is no overlap in the activities of the two companies in the relevant market and the Authority did not establish any substantial lessening of competition concerns arising from the merger. “The proposed transaction involves an internal restructuring where by the acquirer’s shareholding is increasing from 50 percent to 51 percent, therefore gaining control. Furthermore, there will be no acquisition of market dominance post-merger. However, the merger under consideration raises public interest concerns (citizen disempowerment) because Pioneer Foods stands to gain control in an enterprise that operates in the sorghum market, a market reserved for citizen owned enterprises.” She also stated that the authority decided to unconditionally approve the proposed acquisition of one percent of the issued share capital. “Regarding the sorghum milling licensing requirements and its attendant issues, the merging parties must liaise with the appropriate authority,” This is in line with section 61 of the Competition Act of 2018 which states that an approval of a merger granted by the Authority shall not relieve an enterprise from obtaining such other approvals as may be required from other bodies in the exercise of their statutory responsibilities. Bokomo produces goods in large quantities that could make it an easy supplier for market in the region and across the continent. Currently, the company is expanding into farming (agricultural products). The products produced and distributed by Bokomo Botswana include: White Star, Lesedi Special, Bokomo Flour, Pure Sugar, and Champion Sorghum. The Target Enterprise is jointly controlled by P F Brink (Pty) Ltd and Pioneer Foods. Bokomo Botswana does not control any other enterprise. Pionner Foods is a producer and distributor of a range of branded food and beverage items. The list of products that Pioneer Foods exports to Botswana include: Spekko rice, Pasta Grande, Liquifruit, Bokomo Cornflakes, Bokomo Rusks, Moirs, and Wellingtons. The products are distributed through Bokomo Botswana in Botswana.