LUSAKA, Jan 28 (Reuters) - 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 servicing vehicles.
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 said.
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)