The Angolan Regulatory Competition Authority (ARC) has approved the merger of companies involving Banco Económico, Seguradoras Unidas and Tranquilidade – Corporação Angolana de Seguros, according to an announcement published in the Jornal de Angola newspaper.
The document, published on the public utility pages of the newspaper, states that on 5 July the ARC Board unanimously decided not to oppose the deal because the assessment concluded that no obstacles to competition would be created in the relevant markets.
The ARC had been notified since 25 March that Angolan bank Banco Económico was planning to acquire the shareholding of Seguradora Unidos in Tranquilidade – Corporação Angolana de Seguros, according to a statement released at the time.
The statement also said that the transaction was subject to the Competition Law, approved in March 2018, which requires prior submission of mergers of companies that achieve a market share or an annual turnover higher than the maximum limit set.
The regulation of the Competition Law makes prior notification of operations in which a market share of 50% or more “is acquired, created or strengthened,” or where this occurs when the market share is between 30% and 50% and individual turnover in Angola in the last year by at least two companies totalled more than 450 million kwanzas.
Banco Económico is the heir of the bankrupt Banco Espírito Santo Angola, while Tranquilidade – Corporação Angolana de Seguros, which launched in 2012, operates in the insurance, reinsurance, investments, stakeholding, representations, pension fund and professional training market. (Macauhub)