WINDHOEK - The Namibian Competition Commission (NaCC) has fined PG Glass Namibia just over N$1.4 million for implementing a merger prior to the notification and approval by the commission. The commission’s investigation found that the merger resulted in a change of control of Alpha Glass and Windscreens CC over to PG Glass Namibia (Pty) Ltd, and such change of control constituted a merger. 

According to a statement issued this week by Chief Executive Officer and Secretary to the NaCC Vitalis Ndalikokule, the commission found that Alpha Glass and Windscreens CC and PG Glass Namibia implemented the merger prior to the notification and approval by the NaCC in contravention of section 44 of the Competition Act. Ndalikokule noted that PG Glass Namibia admitted that it contravened the Competition Act.

“Merging companies are required to notify their intention to merge to the Namibian Competition Commission as stipulated in the Namibian Competition Act No.2 of 2003. Thus, no company should under any circumstances implement a merger without prior approval of the commission, as this will be in contravention of the Competition Act. The Competition Act indicates that a merger occurs when one or more undertakings acquire direct or indirect control over another undertaking. Amongst other things, this can be achieved through the buying of assets or shares in the company being acquired,” said Ndalikokule. 

The NaCC chief added that PG Glass Namibia purchased the entire business of Alpha Glass and Windscreens, and therefore gained control over the entire business. 
The commission initiated proceedings in the High Court in 2018 and commenced settlement negotiations with PG Glass Namibia. The two parties agreed to a fine of N$1,406 million which was made an order of court in April this year. 

“The commission will continue to vigorously pursue those companies who do not comply with the Competition Act. Contraventions of the merger regulations can lead to monopoly power, higher consumer prices, reduced consumer choice and lower quality products or services,” Ndalikokule cautioned.