NaCC approves Trafigura, Puma Energy merger

PHILLEPUS UUSIKUThe Namibia Competition Commission (NaCC) approved the proposed merger between Trafigura and Puma Energy as the transaction will not alter the current competitive landscape in Namibia.According to the commission’s spokesperson Dina Gowases, the proposed acquisition which entails Trafigura acquiring control over Puma Energy, including indirectly, its Namibian subsidiary was made on 29 April 2021.The transaction was primarily driven by Puma Energy’s re-financing requirements and Trafigura’s desire to protect its existing investment in Puma Energy. Despite management’s efforts, Puma Energy has been unable to secure refinancing from alternative third-party sources and, absent financing from its existing shareholders, would likely enter insolvency proceedings in the foreseeable future.“As this is a conglomerate merger, no competition is eliminated, it is unlikely that the merger will allow the merged undertaking to unilaterally exercise market power or to foreclose competitors by tying or bundling. Further, given the estimated market share of the target undertaking, we can deduce that the implementation of the proposed merger will not lead to a strengthening of a dominant position, nor does it lead to the target to unilaterally manipulate market prices in the markets it operates. It is, therefore, unlikely that the proposed merger would result in the prevention or substantial lessening of competition,” Gowases added.ShareholdersPuma Energy is a firm incorporated in accordance with the laws of Singapore and is the ultimate holding company for the Puma Energy group and is not controlled by any single shareholder. Puma Energy is an integrated energy company operating in more than 40 countries globally, primarily active in retail, wholesale and B2B distribution of refined petroleum products. Puma Energy also owns and operates several midstream infrastructure assets including storage facilities and marine terminals, Gowases said.In addition, Trafigura is also a firm incorporated in accordance with the laws of Singapore and is ultimately beneficially owned by circa 850 of its employees and directors.Trafigura believes that, while some restructuring and re-focusing of Puma Energy’s business is required, its underlying business model and asset base remains viable and that by consolidating Puma Energy as part of Trafigura Group, Trafigura will be better able to place Puma energy on a stronger financial footing in the short term. In the medium-to- long term, Trafigura may consider de-consolidating Puma Energy by bringing in additional third-party investors. The transaction will provide Puma Energy with short-term financial security, and in the longer term provide a sound financial basis allowing Puma Energy to continue to deliver on its strategic plan, Gowases said.

NaCC approves Trafigura, Puma Energy merger

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Republikein 2025-12-15

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NaCC approves Trafigura, Puma Energy merger

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Republikein 2025-12-15

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