The Competition Commission of the Common Market for Eastern and Southern Africa (COMESA) has published a notice of inquiry into the proposed acquisition of Egypt's Delta Insurance by Morocco's Wafa Assurance.
This notice is to all interested stakeholders, competitors, suppliers and customers of the parties to the proposed transaction to submit written representations to the Commission with regard to the proposed acquisition.
The COMESA Competition Commission promotes and encourages competition by preventing restrictive business practices. COMESA comprises 21 African member states that came together to promote regional integration.
Wafa Assurance currently operates in the life insurance market in Egypt and Tunisia. In the Common Market, it operates in Burundi, the Democratic Republic of Congo, Egypt, Ethiopia, Kenya, Libya, Madagascar, Mauritius, Rwanda, Sudan, Tunisia and Uganda. Wafa Assurance is a leading insurer in Morocco.
Delta Insurance operates in non-life insurance in Egypt, while its subsidiary, Delta Life Assurance, operates in life insurance in Egypt. Delta Insurance and Delta Life have operations only in Egypt in the Common Market.
The parties submitted that Wafa Assurance plans to acquire a percentage between 51% and 100% of the shares of Delta Insurance. The parties have submitted that the purpose of the transaction is to allow Wafa Assurance to extend its insurance services to the Egyptian market, as it will allow Wafa Assurance to slightly boost its negligible position in the life insurance segment, and enter the non-life insurance segment, both in the Egyptian insurance market. The parties further submitted that on completion of the deal, the life insurance businesses of Wafa Assurance and Delta Insurance will be combined.
The Commission will determine, among other things, whether the proposed transaction is likely to substantially prevent or lessen competition in the Common Market and whether the proposed transaction is or will be contrary to the public interest.
Egypt's Financial Regulatory Authority (FRA) has approved the publication of a mandatory tender offer submitted by Wafa Assurance to acquire shares in Delta Insurance Company. The Egyptian Competition Authority has also approved Wafa Assurance’s proposed acquisition.