KFC new owners to appear before Competition Authority

Keikantse Lesemela
Friday, 19 January 2018

KFC Botswana’s acquring enterprise, Bradleymore’s will appear before the Competition Authority on Friday to defend their acquisition, which was first annouced last year.

In a statement the Competition Authority states that the hearing is intended to allow the parties to the transaction to make verbal representations to the Authority with respect to the transaction as well as allow their competitors and the general public to express views on the acquisition. 

KFC Botswana portfolio, which consists of 12 restaurants, was placed under liquidation in June last year after the company failed to service its debts and creditors. In November of the same year, Bradlymore’s which a joint venture company between Vivo Energy is and Baobab Khulisani South Africa acquired KFC Botswana from the liquidator, Nigel Dixon-Warren. Vivo Energy through its network of Shell-branded retail service stations in Botswana is a marketer of various oil products including retail fuels, commercial fuels and lubricants. On the other hand, Baobab Khulisani, a South African KFC franchisee operates 11 stores in South Africa.

The anti-trust body also states that other interested parties not party to the proposed transaction will be afforded an opportunity to voluntarily submit to the Authority any document, affidavit, statement or other relevant information in respect of the proposed acquisition. “The hearing will be held with each of the parties to the transaction and other interested parties, pursuant to section 58(3)(a) of the Competition Act,” states the Authority.

Bradlymore’s is a limited liability company incorporated in accordance with the laws of the Republic of Botswana. It is a special purpose vehicle that was set up for purposes of the proposed transaction and, as such, is not involved in any form of activity. 

KFC Botswana business is operated through three wholly owned subsidiaries of VPB Propco (Pty) Ltd which includes Greenax (Pty) Ltd (Greenax), QSR (Pty) Ltd (QSR) and Boitumelo Dijo (Pty) Ltd. The aforementioned subsidiaries operate 12 KFC franchises in Botswana situated in the following areas: six in South-East district; two in North-East district; and one in each of Southern (Kanye), Kweneng district (Molepolole), Ngamiland district (Maun), and Chobe district (Kasane).

In 2015 local poultry farmers raised concerns over KFC Botswana, pointing out that the company is not supporting local chicken farmers as it gets most of its products from South Africa. The chicken farmers appealed to the new owners to come with a policy that will at least help them to supply the fried chicken outlet with some of the stock. However, it was revealed that KFC’s requirements on slaughtering and handling of the chickens have to meet some of stringiest rules in place, including transportation from the abattoir to the restaurants.

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