The Competition and Tariff Commission has given the green light to Dubai-based ASB Hospitality LLC’s acquisition of Makasa Sun in Zimbabwe, ruling that the US$30 million deal poses no threat to market competition.
Instead, the commission said the investment is expected to breathe new life into the dormant hospitality property in Victoria Falls, boosting tourism activity and strengthening the resort city’s accommodation sector.
According to heraldonline.co.zw, in its assessment, the antitrust regulator dismissed concerns over potential horizontal merger complications, specifically evaluating whether the deal would lead to “unilateral” or “coordinated” market-fictitious effects that typically restrict consumer choice or fix prices.
The CTC established that the transaction does not result in either a competitive threat, primarily because of distinct geographical markets and the fact that the target entity is currently inactive.
“Instead, the transaction is expected to resuscitate operations at the hotel property that is currently dormant,” the CTC noted, adding that the merger will likely have a pro-competitive effect by reintroducing a viable competitor into the premium hotel accommodation market in Victoria Falls.
The regulatory nod clears a primary hurdle for ASB Hospitality, a subsidiary of the UAE’s Albwardy Investment, to take full control of the 294-room Kingdom Hotel property from sellers First Capital Bank and the First Capital Bank Staff Pension Fund, who each held a 50 percent stake.
The asset has been closed since early 2023 following a bitter lease dispute and the subsequent exit of its previous operator, African Sun Limited.
The prolonged vacancy left a massive void in the resort town’s room capacity during a period of robust post-pandemic tourism recovery.
Under the agreed terms of the deal, ASB will deploy the balance of the US$30 million purchase price — following an initial US$3 million escrow deposit made late last year — clearing the way for major capital expenditure to refurbish and rebrand the culturally inspired property under an international flag.
For First Capital, which is listed on the US dollar-denominated Victoria Falls Stock Exchange (VFEX), the CTC approval allows the financial institution to formally exit a non-core, dormant investment.
The transaction substantially expands the footprint of United Arab Emirates capital in Zimbabwe’s high-end hospitality sector.
It represents ASB Hospitality’s second major asset acquisition in the country, adding to its 2019 purchase of the historic Meikles Hotel in Harare, which was recently upgraded and rebranded as the Hyatt Regency Harare, The Meikles.
The CTC has also approved the acquisition of regional seed producer Klein Karoo Seed Marketing (K2) by multinational conglomerate ETG Inputs HoldCo Limited.
The transaction involves ETG acquiring K2’s core African operations in Zimbabwe. The deal also includes K2’s Zimbabwean subsidiary, the Agricultural Seeds and Services (Private) Limited, widely known as Agriseed.
ETG Inputs is a dominant supplier of agricultural inputs across Africa, specialising in fertiliser blending, agrochemicals, and regional distribution networks.
The acquisition is part of ETG’s aggressive strategy to build a “360-degree” input portfolio by significantly broadening its proprietary seed offerings.
K2 is a well-established regional seed breeder and producer with an expansive footprint across Zimbabwe, Zambia and Mozambique.
K2 specialises in climate-suited certified seed varieties, including maize, sorghum, pulses, small grains and pastures.
Agriseed has been a key player in Zimbabwe’s agricultural sector for a long time, specifically noted for its historical partnerships with smallholder farmers to multiply and distribute high-yield seed varieties suited for small-scale production.
