CBZ Abandons Pursuit Of FMHL Shares After Regulatory Block
CBZ Holdings Limited (CBZ) has decided to stop pursuing more shares in First Mutual Holdings Limited (FMHL) after the Competition and Tariff Commission (CTC) blocked the move.
In December 2024, the CTC blocked CBZ from buying more shares in FMHL because they were concerned it would create too much market power for CBZ, which could harm competition.
CBZ already owned 36.22% of FMHL after buying 31.22% shares from the National Social Security Authority (NSSA) in September 2023. At that time, NSSA had a 65.53% stake in FMHL.
According to Zimbabwe Stock Exchange rules, once CBZ reached this level of ownership, they had to make an offer to buy the remaining shares from other shareholders.
So, CBZ’s total stake in FMHL was 36.22%, including their previous 5% ownership. In a statement issued on Wednesday, CBZ said:
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Further to previous cautionary statements issued in respect of a potential acquisition of a complementary business in the financial sector, the last of which was issued on November 4, 2024, the directors of CBZ Holdings Limited wish to advise all shareholders and the investing public that the company received a decision from the Competition and Tariff Commission (CTC) on December 9, 2024 in respect in of the potential acquisition.
The CTC set various conditions for approval of the transaction and having considered the nature of the conditions, the directors have decided that company will no longer proceed with the transaction.
Accordingly, shareholders and the investing public are hereby advised that the company will no longer be proceeding with the acquisition of a complimentary business as previously announced. No further announcements will be made in respect of this issue.
Social media personality Mmatigari criticized the Competition and Tariff Commission (CTC) for their decision.
He said the CTC is run by “very dumb people” with a “village mindset,” which he believes goes against the goal of creating a $100 billion economy. He wrote on X:
We can’t just build Zimbabwe on the back of digging up minerals off the ground and shipping them off to foreign nations, we must build banks with the ability to scale. Africa is open for Zimbabwe to take.
These same people allow Innscor to buy and shut down competition but will block the CBZ / ZB / FML merger on myopic grounds.
Banking in Zim is an oligopoly. There is no meaningful competition in the Zimbabwean market. All the banks here are weak, have no scale and leach off consumers.
There is no reason whatsoever to think that the more they are the better the service consumers get.
We need strong banks at home to conquer the region. The region is already being overrun by banks from West Africa takangoti vavava.
Ecobank bought a local bank here. It’s from West Africa. Access Bank bought BancABC in Botswana, Mozambique and Tanzania. It’s from Nigeria. Stanbic bought a local bank ANZ Grindlays etc…
We have South African banks here: Nedbank, Stanbic, CABS – they come here because their parent countries empowered them to conquer regional markets.
Mmatigari criticized the CTC for blocking the CBZ merger, saying it goes against the national goal of building a $50 billion banking sector in the next 10 years.
He suggested that when President Emmerson Mnangagwa returns from his annual leave early next month, his priority should be to use his executive authority to override the CTC’s decision and get them in line.
