The Botswana Competition Authority has asked for stakeholder views on the merger between Cresta Marakanelo and United Promotional Enterprises trading as Cezar Hotel following an investigation by the regulator.
The competition body said it has received a merger notification Pursuant to section 63(1) of the Competition Act (Cap 46:09), although the transaction was not sanctioned. Cresta acquired the 65 roomed hotel in the mining town for P25 million.
“This follows investigations by the Authority which revealed that a merger was implemented without notifying the Authority,” Competition Authority said.
“Despite the merger having been implemented without notification, the Authority is empowered to retrospectively assess and make a determination to the concerned parties regarding the transaction”.
The proposed transaction involves Cresta Marakanelo acquiring some assets, contracts and liabilities from Cezar Hotel. The proposed transaction further involves Cresta Marakanelo renting out Cezar Hotel’s premises in Jwaneng for conducting its business.
Both Cresta Marakanelo and Cezar Hotel are operational in Botswana in the hotel facilities market, offering mainly accommodation, food and drinks. Cresta Marakanelo has hotels in various areas in Botswana such as Gaborone, Mahalapye, Palapye, Selebi Phikwe, Francistown, Maun and Kasane. Cezar Hotel on the other hand, only has a branch in Jwaneng.
According to section 57(3), of the Competition Act, “any person, including a third party not a party to the proposed merger, may voluntarily submit to the inspector or the Authority any document, affidavit, statement or other relevant information in respect of a proposed merger”.
“The Competition Authority therefore seeks any stakeholder views in favour of or against the proposed merger, which may be sent within 10 days from date of this publication….”.