Almin Metal Industries acquires City Glass
ALMIN Metal Industries (Almin) has acquired three companies — RD Architectural Aluminium (AA), Lupane Timber Products (LTP) and City Glass and Paint Supplies (City Glass) — becoming one of the biggest merger deals inked recently.
Almin is a Zimbabwean-registered company with various subsidiaries operating in the manufacturing sector and related markets.
It extrudes and powder coats various aluminium profiles, irrigation pipes and fittings and complements local production through the sale of imported aluminium accessories.
Almin has operations in Harare, Bulawayo, Mutare and Gweru.
AA, LTP and City Glass have interests in fabrication and installation of aluminium and glass windows, doors, shopfronts and building facades among others.
The parties approached the Competition and Tariff Commission (CTC) in February this year seeking approval of the deal, which has since been concluded.
“The commission approved the merger on condition that Almin, its subsidiaries and affiliates, and its successors in title should supply other aluminium and glass fabricators with toughened and tinted glass, and offer non-discriminatory terms and conditions on glass supply that include inter-alia prices, quantity, quality and or any other,” CTC said in its second quarter report.
It said the merged operation would offer several services including fabrication processes and painting and processing of trees into timber.
“The aluminium market has more competitors as the barriers to entry are minimum. As an importer, entry and exit in the market is free,” it said.
“However, it is difficult as a manufacturer. The glass market has imported products as Zimbabwe does not produce glass but value adds to imported glass thus the market is highly competitive with numerous players.
“The timber market has exogenous tree plantations controlled by the Forestry Commission. It also has numerous timber product manufacturers (formal and informal), big competitors and a number of small players (40% of the market).”
The report said all the industries were extremely competitive with many formal and informal new players.
The commission classified the transaction as a conglomerate merger with vertical elements,