General Motors stake sale to Isuzu attracts Comesa scrutiny

Comesa Competition Commission (CCC) is looking into Isuzu’s acquisition of General Motors East Africa (GMEA) with a view to finding out whether it will interfere with competition in the region.

In a notice of inquiry into Isuzu’s proposed purchase of a 57.73 per cent stake in GMEA, CCC said it intends to embark on an inquiry after receiving notification of acquisition from the involved parties.

“The commission will, in accordance with the provisions of the regulations, determine among other things whether or not the merger is likely to substantially prevent or lessen competition within the Common market and whether the merger is or would be contrary to public interest as provided for under Article 26 of the regulations,” says CCC.

CCC wants interested stakeholders — including competitors, suppliers and customers of the merging parties — to submit written representations with regard to the acquisition.

Mergers and acquisitions are prohibited in the common market if they are likely to have an effect on trade between member states and have as their object the prevention, restriction or distortion of competition within the regional market.

CCC oversees all mergers and acquisitions as well as checks on anti-competitive practices within the 19 Comesa member states in Africa. It has been operational since 2013.

Last year, Eveready #ticker:EVRD sought the approval of CCC for importation and distribution of a range of products on behalf of international companies.

GMEA’s manufacturing plant in Nairobi assembles a wide range of Isuzu motor vehicles and also retails fully built Chevrolet vehicles which are sold in Kenya, Uganda, and Rwanda.

Isuzu also owns majority shares in a South African registered company Isuzu Trucks South Africa Limited.