The Competition and Consumer Authority (CCA) has granted unconditional approval for the acquisition of Lot 2658 in Selebi-Phikwe from BBS Bank Limited by Seventy5 Degrees (Pty) Ltd, a company acting on behalf of the Botswana Public Officers Pension Fund (BPOPF). The transaction was notified to the CCA on June 26, 2024, and the assessment was concluded on July 19, 2024.
This acquisition is part of BBS Bank’s broader strategy to reposition itself from a building society to a commercial bank, a transition that has required the bank to divest from non-core assets, including real estate holdings, in line with the Banking Act. Lot 2658, a commercial property located in Selebi-Phikwe, is among the assets being sold as part of this restructuring.
Seventy5 Degrees, the acquiring entity, is a property asset manager that operates under an incubation program established by BPOPF to foster investment opportunities. This acquisition marks Seventy5 Degrees’ first foray into the property market in Selebi-Phikwe, signaling the company’s ambitions to expand its footprint across Botswana. The transaction is expected to have a modest impact on the property leasing market in the region, given that Seventy5 Degrees is a new entrant, and BBS Bank is in the process of reducing its property portfolio.
In its analysis, the CCA found no significant competition concerns arising from the merger. The Authority determined that the transaction would not result in a substantial lessening of competition within the property leasing market in Selebi-Phikwe or other regions. Furthermore, the CCA concluded that the merger would not negatively impact public interest matters in Botswana, in accordance with Section 52(2) of the Competition Act, 2018.
This approval underscores the CCA’s confidence that the acquisition aligns with market regulations and public interest considerations. However, the CCA emphasized that this approval does not override or negate the need for any additional statutory approvals or processes that the involved parties must comply with under Botswana’s laws. This includes any necessary clearances from other regulatory bodies that govern property transactions and financial operations in the country.
The transaction represents a significant step for BPOPF in its ongoing strategy to diversify its investment portfolio while supporting the growth of local businesses through incubation programs like the one managing Seventy5 Degrees. As BBS Bank continues its transformation into a commercial bank, the sale of properties like Lot 2658 enables it to focus on its core banking activities, potentially enhancing its service offerings to both local and international clients.
For Seventy5 Degrees, this acquisition could serve as a springboard for further investments in the property market, particularly in underserved areas like Selebi-Phikwe, where economic diversification and development remain critical to the region’s future.
