The Fair Competition Commission (FCC) has approved acquisition of BP Tanzania Limited’s 50 per cent shares by Puma Energy (Tanzania) Investments Limited.
Quoting the FCC Director General, Geoffrey Mariki, it said the commission approved the merger unconditionally, pursuant to Rule 51 (13) (a) of the Fair Competition Commission procedure rules, 2010.
The approval done early this month follows a share purchase agreement reached in November last year between Puma and BP Tanzania Limited after consultation with the government, which is the co-shareholder.
A press statement issued by FCC in Dar es Salaam yesterday said the government granted no objection to the shares sale.
Quoting the FCC Director General, Geoffrey Mariki, it said the commission approved the merger unconditionally, pursuant to Rule 51 (13) (a) of the Fair Competition Commission procedure rules, 2010.
The petroleum sector is normally subdivided into two markets namely Upstream (exploration and excavation) and Downstream (from refinery to retail level), the statement said.
BP operates in the downstream petroleum market, as one amongst 29 ground petroleum business operators, the statement noted.
Their main activities are importation, storage, export, inland transportation of refined petroleum products, wholesale and retail distribution of petroleum products including liquefied petroleum gas.
The statement reminded all firms intending to merge or acquire other firms having operations in Tanzania, which, through the merger or acquisition may result in the change in control or ownership of a business and have their combined value of turnover or asset reaching 800m/- , to notify the Commission prior to consummation of the merger or acquisition.
According to the statement, failure to notify a merger is an offence under the Fair Competition Act.
On March 8, this year Puma Energy (Tanzania) Investment Ltd acting under Section 11(2) of the Fair Competition Act, 2003 (FCA) and Rule 42(2) notified the FCC of its intention to acquire 50 per cent of issued share capital in BP (Tanzania) Limited.
The remaining 50 percent interest in BP will continue to be held by the government.
SOURCE: THE GUARDIAN
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