CTC approves Kingdom Hotel takeover

The Competition and Tariff Commission (CTC) has approved the acquisition of Makasa Sun by Dubai-based ASB Hospitality LLC, ruling that the US$30 million transaction will not harm market competition and is instead expected to revive a major dormant tourism asset in Victoria Falls.

In its assessment, the antitrust regulator dismissed concerns over possible horizontal merger complications, specifically evaluating whether the transaction could create "unilateral" or "coordinated" market effects capable of reducing competition, limiting consumer choice or influencing prices.

The CTC concluded that the deal does not pose a competitive threat, largely because the parties operate in distinct geographical markets and the target entity is currently inactive.

"Instead, the transaction is expected to resuscitate operations at the hotel property that is currently dormant," the commission said.

The regulator added that the acquisition is likely to have a pro-competitive effect by reintroducing a viable player into Victoria Falls' premium hotel accommodation market.

The approval clears a major regulatory hurdle for ASB Hospitality, a subsidiary of UAE-based Albwardy Investment, to take full control of the 294-room Kingdom Hotel property from First Capital Bank and the First Capital Bank Staff Pension Fund, which each held a 50 percent stake.

The property has remained closed since early 2023 following a lease dispute and the departure of its former operator, African Sun Limited. Its closure created a significant gap in room capacity at a time when Victoria Falls tourism has been experiencing strong post-pandemic recovery.

Under the agreement, ASB Hospitality will deploy the remaining balance of the US$30 million purchase price after making an initial US$3 million escrow deposit late last year. The investment is expected to fund major refurbishment works and the rebranding of the culturally inspired hotel under an international hospitality brand.

For First Capital Bank, which is listed on the Victoria Falls Stock Exchange (VFEX), the approval enables the institution to exit a non-core dormant investment.

The transaction further strengthens United Arab Emirates investment presence within Zimbabwe's high-end hospitality sector.

It also marks ASB Hospitality's second major acquisition in Zimbabwe after its 2019 purchase of the historic Meikles Hotel in Harare, which was recently upgraded and rebranded as the Hyatt Regency Harare The Meikles.

Meanwhile, the CTC has also approved the acquisition of regional seed producer Klein Karoo Seed Marketing (K2) by multinational conglomerate ETG Inputs HoldCo Limited.

The transaction includes ETG acquiring K2's core African operations in Zimbabwe, including its local subsidiary Agricultural Seeds and Services Private Limited, commonly known as Agriseed.

ETG Inputs is one of Africa's dominant agricultural input suppliers, specialising in fertiliser blending, agrochemicals and regional distribution networks.

The acquisition forms part of ETG's strategy to broaden its seed portfolio and strengthen its integrated agricultural input offering across the continent.

K2 has established a strong regional footprint across Zimbabwe, Zambia and Mozambique, focusing on climate-suited certified seed varieties including maize, sorghum, pulses, small grains and pasture crops.

Agriseed has long played a significant role in Zimbabwe's agricultural sector, particularly through partnerships with smallholder farmers to multiply and distribute high-yield seed varieties.