‘Broken promises’ and ‘chaos’

How a merger deal left fuel station owners fuming

After two years of negotiations over the sale of 52 Vivo Energy service stations, some fuel dealers say a process meant to protect competition has left them facing chaos and their businesses at risk.

During two meetings in February, the Namibian Competition Commission (NaCC) assured dealers the sale should have no negative impact.

“When we made that decision [about conditions of the merger], the intention was that the dealers [would] not be worse off,” NaCC director of mergers and acquisitions Johannes Ashipala said at the first meeting.

Four months on, some dealers say they are worse off.

Presentations and minutes of the meetings, which The Namibian has seen, show retailers have complained about unilateral contract changes and feared for their businesses.

“This forum was supposed to happen two years ago.

You [the NaCC] were supposed to go and listen first to what the dealers have to say before you even started the process. No, this is – sorry for the word – but this is total chaos,” one person present at the 17 February meeting said.