Competition commission dealing with Pep’s plans to buy Big Daddy

The Namibian Competition Commission (NaCC) held a stakeholder conference on Wednesday to discuss two proposed mergers under investigation.

The mergers involve Pep Stores Namibia Proprietary Limited’s planned acquisition of Big Daddy Clothing, and JD Financial Services Proprietary Limited’s proposed acquisition of the OK Furniture debtors’ book.

The conference was conducted to gather information and assess the effects of these transactions on market competition.

Vitalis Ndalikokule, chief executive of the NaCC, further explained the gathering’s purpose, saying: “The event aims to inform stakeholders about the merger and provide them with an opportunity to engage the commission and the merging parties.”

He added that it offers a platform to raise concerns or propose remedies, while allowing merging parties to respond.

Ndalikokule outlined the commission’s mandate defined in the Competition Act, which includes promoting and safeguarding competition, adding that the act empowers the commission to intervene in mergers that may reduce competition markets.

“The commission assesses mergers case-by-case, considering factors such as market structure, shares, entry or expansion potential and anti-competitive risks,” he said.

The mergers are classified as horizontal, involving entities operating at the same level of the supply chain.

He took note of theories of harm linked to such mergers, including coordinated effects and unilateral effects, as well as risks tied to vertical and conglomerate mergers, but emphasised that these theories vary depending on specific circumstances.

Ndalikokule then called for professional engagement among stakeholders.

“All matters should be brought forward to assist the commission in making an informed decision,” he said.

The commission will review concerns and remedies raised during the conference before making its final determination on the proposed mergers. – Nampa