IDCE Acquires 55% Shareholding in Pigg’s Peak Plaza

The Industrial Development Company of Eswatini (IDCE) has acquired 55% shares of Pigg’s Peak Plaza from Leadenhall Investments.

This is contained in the Eswatini Competition Commission Merger Decisions for the second quarter of 2023/24.

The Commission examines merger notifications in order to make a determination on the effects of such transactions on competition and then either gives approval without any conditions, or subject to specific conditions or prohibits the transactions based on the outcome of the analysis.

The Commission notes that the acquiring firm, IDCE, is a development finance company that is incorporated and registered under the company laws of Eswatini with its principal place of business situated on the 5th Floor of Dlanubeka Building, Mbabane.

IDCE, formerly known as Swaziland Industrial Development Company (SIDC) was formed in 1986 through a joint venture between the Government of Eswatini and five major international finance institutions namely DEG (Germany), CDC of the United Kingdom, FMO of the Netherlands, PROPARCO of France and IFC (World Bank).

Meanwhile, the target firm, Pigg’s Peak Plaza is a company registered and incorporated in terms of the company laws of Eswatini. The company developed Pigg’s Peak Plaza which provides leasing space to varied tenants from retail, service providers, supermarkets, and a filling station.

The Commission discloses in its report that when reaching a decision it considered the products of the parties and concluded that the relevant market is the provision of commercial space in Pigg’s Peak Plaza.

“In its analysis, the Commission considered the activities of the merging parties and found that there are overlaps since the acquiring firm is already a minority shareholder in Pigg’s Peak Plaza. However, the transaction is categorized as a phase 1 merger because the merging firms’ combined market share in the relevant market is below 15%. Post-merger, the market shares in the relevant market and market concentration will not be altered, such that the structure of the market will remain unchanged. Countervailing power and barriers to entry will not be affected, therefore, the transaction is unlikely to result in the substantial lessening or prevention of competition. The Commission approved the transaction without conditions,” notes the Commission.

According to information sourced from IDCE’s website, their portfolio of commercial property investments includes a 100% shareholding at the Swazi Plaza, 50% at Simunye Plaza, and before the aforementioned acquisition 45% at the Pigg’s Peak Plaza.

This translates to IDCE now owning 100% of Piggs Peak Plaza. The company also has a 20% shareholding in SWAPROP, a property investment holding company listed on the Eswatini Stock Exchange which derives its income from interest on loans with its subsidiary companies and interest on investment accounts.

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