Paradise cleared to gain shares

THE Independent Consumer and Competition Commission (ICCC) has given clearance to Paradise Company Ltd to proceed with its proposed acquisition of shares in Hugo Canning Company Ltd.
The ICCC noted in a statement that it had not found any serious concerns in its consideration of likely negative effects this acquisition could have on competition.
Commissioner and chief executive officer Paulus Ain said the proposed acquisition required ICCC’s approval because the transaction value was more than K50 million.
It would result in Paradise having more than 50 per cent market share in affected relevant markets, crossing the two mandatory notification thresholds (for clearance application).
Paradise Food chief executive James Rice yesterday told The National that the ICCC approval “only means they would allow Paradise Company to purchase Hugo Canning Company, but we have not made the decision to purchase them or not”.
“We are still reviewing their business in order to make a decision,” he said.
“I understand many people believe the ICCC announcement meant we were purchasing that company, but as of now, this is not correct.”
On Dec 4, 2020, Paradise Company lodged a clearance application seeking approval from ICCC to proceed with acquiring Hugo.
Paradise is owned by Nambawan Super Ltd (91 per cent) and Comrade Trustees Ltd (9 per cent).
It is in the food manufacturing business – biscuits, chocolates and beverages (bottled water).
Hugo, on the other hand, manufactures and distributes imported canned protein.
“For any clearance applications, the ICCC is required to assess competition effects associated with the proposed acquisition,” Ain said.