Description of Activities

Description: The Commission resolved to approve with conditions the acquisition by Frans Indongo Investment Trust (“FIIT”) of issued share capital in Direct Auto Parts Close Corporation (“Direct Auto”) from Mr. Marco van den Heever, through the creation of a new entity, NewCo. 

Acquiring group: The primary acquiring undertaking is Frans Indongo Investment Trust (“FIIT”), a trust duly incorporated in accordance with the laws of Namibia. FIIT has interests in various industries such as automotive, manufacturing, and property.

Target undertaking: The primary target undertaking is Direct Auto Close Corporation (“Direct Auto”), a company duly incorporated in accordance with the laws of Namibia that conducts business activities such as vehicle fitment and related activities in Namibia. 

Relevant market: Defined the relevant product market, which is twofold: the retail and supply of automobiles/ vehicle in Namibia (downstream) and the supply and installation of vehicle fittings such as canopies, towbars, tires, bull-bars, and other automotive accessories in Namibia (upstream).

Merger Determination

The Commission found the proposed transaction likely to result in the prevention or substantial lessening of competition and likely to result in the merged undertaking acquiring or strengthening a dominant position in the market and further raises public interest concerns, particularly within the relevant upstream market, where the risk of customer foreclosure was most pronounced. Therefore, to address the potential risks of customer foreclosure and the associated public interest implications, the Commission approved the merger subject to the following behavioural conditions: to conduct business with existing and potential customers in the vehicle fitment market on fair, reasonable, and non-discriminatory (FRAND) terms, and secondly, the merged entity shall maintain existing supply and procurement relationships with independent fitment firms or distributors for a period of three years.

Merger Determination No.6 of 2025_