ZCC ‘authorizes’ Zamtel takeover

The Board of Commissioners of the Zambia Competition Commission has granted authorization for the proposed takeover of 75% share capital of the Zambia Telecommunications Company (Zamtel) by LAP Green Networks of Libya.
In granting authorization, the ZCC Commissioners cited lack of adverse competition and consumer concerns in the transaction.
According to a statement made available to Qfm today, the Zambia Development Agency had sought the Commission’s authorization under Section 8 of the Competition and Fair Trading Act Cap 417 of the Laws of Zambia.
At its 16th Special Board of Commissioners meeting held on Friday, 18TH June 2010 in Lusaka, the Board recognized that while public opinion is wide and varied, the Commission’s mandate and concern in the sale of Zamtel and in any other takeover or acquisition is limited to determining whether there are any competition and fair trading issues that would affect a relevant sector, trade or the consumers in general.
The statement by ZCC says after considering the submissions by the applicants and other parties, as well as the competition analysis before it, the Commissioners resolved to authorize the transaction to be effected in Zambia as the transaction would not likely raise any competition concerns that may lead to any adverse effects in the internet, fixed landline and mobile phone provision sector, on trade or the economy in general in Zambia.
It says this was viewed to be primarily because LAP Green Networks does not have any known business presence in any of the ICT sectors in Zambia to raise competition concerns.

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