LUSAKA Jan 28 A Zambian government regulator
has rejected a proposed merger of Japanese conglomerate Toyota
Tsusho Corp and France's CFAO, saying on
Monday it would lessen competition in the local car market.
The companies are both involved in the selling and
distribution of new vehicles and parts in Zambia as well as
Competition and Consumer Protection Commission spokesman
Hanford Chaaba said allowing the merger would give the two
companies a combined market share of 75 percent.
"This would create a situation where decisions of the merged
entity may influence others as far as market dynamics are
concerned, such as pricing and product availability," Chaaba
Toyota Tsusho Corp said in December it had secured almost 98
percent of French distribution company CFAO.
(Reporting by Chris Mfula; Editing by Jon Herskovitz)