[2007-09-18]  Zambeef to takeover Amanita
ZAMBEEF Products Plc is expected to takeover Amanita Premier Oils Zambia Limited and it’s milling plant because of the gloomy financial position the two entities are facing.

The Zambia Competition Commission (ZCC) has since authorised that the takeover transactions be effected.

According to a ZCC statement released in Lusaka yesterday, the ZCC board deliberated over the notification and determined to grant a final authorisation for acquisition of assets and liabilities of Amanita Milling Limited and the oil plant.

The approval for the transaction to be effected was made at a ZCC special board meeting held last Thursday.

ZCC executive director, George Lipimile said the board was concerned over the manufacturing decline at Amanita over the years.

Mr Lipimile said, however, that the board was optimistic that the goodwill that Zambeef has with financial institutions would turn around the dismal financial performance at Amanita into an economic viable industry.

“The board has noted that Amanita was a ‘sleeping giant’ that like Zambeef, could stamp its authority on Zambian entrepreneurship if operated with a strategic vision”, he said.

He said Zambeef, which is listed on the Lusaka Stock Exchange would guarantee the critical financial injection into a seemingly failing enterprise.

The board was however concerned that a dominant and vertically integrated corporation could in future abuse its market power and expected that Zambeef adhered to the principles of fair competition.

The board said there was need for Zambia to have bigger firms that would operate efficiently through the attainment of critical mass in production and spreading of risk through diversified investment portfolios.

“With regional integration process, such national champions would assist such entities to build their marketing strategies around a strong brand and attain requisite competencies,” he said.




Source: © 2005 Zambia Daily Mail.