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The Competition and Consumer Authority (CCA) has unconditionally approved the acquisition of Plot 2658, Selebi-Phikwe, by Seventy5 Degrees (Pty) Ltd from BBS Bank Limited on behalf of the Botswana Public Officers Pension Fund (BPOPF). The transaction was notified to the CCA on 26 June 2024 and the valuation was completed on 19 July 2024.
The acquisition is part of BBS Bank’s overall strategy to transform from a building society to a commercial bank, a transformation that requires the bank to divest non-core assets, including real estate assets, in accordance with the Banking Act. Lot 2658, a commercial property located in Selebi-Phikwe, is one of the assets being sold as part of the restructuring.
The acquirer, Seventy5 Degrees, is a real estate asset management company operating under the incubation program set up by BPOPF to promote investment opportunities. The acquisition marks Seventy5 Degrees’ first foray into the Selebi-Phikwe real estate market and demonstrates the company’s ambition to expand its footprint in Botswana. Given that Seventy5 Degrees is a new entrant and BBS Bank is reducing its real estate portfolio, the transaction is expected to have a modest impact on the real estate leasing market in the region.
In its analysis, the CCA found that the merger did not raise significant competition concerns. The agency determined that the transaction would not result in a substantial lessening of competition in the real estate leasing market in Selebi-Phikwe or elsewhere. In addition, the CCA concluded that the merger would not have a negative impact on matters of public interest in Botswana under section 52(2) of the Competition Act 2018.
The approval underscores CCA’s confidence that the acquisition complies with market regulations and public interest considerations. However, CCA stresses that the approval does not override or negate the need for any additional statutory approvals or procedures that the parties must comply with under Botswana law. This includes any necessary licenses from other regulators that govern real estate transactions and financial operations in the country.
The transaction is an important step for BPOPF in its strategy to diversify its portfolio while supporting the growth of local businesses through incubation programmes such as the one it manages Seventy5 Degrees. As BBS Bank continues its transformation into a commercial bank, the sale of properties such as Lot 2658 enables it to focus on its core banking business, potentially enhancing its services to local and international clients.
For Seventy5 Degrees, the acquisition can serve as a springboard for further investment in the real estate market, especially in underserved areas such as Selebi-Phikwe, where economic diversification and development remain vital to the region’s future.
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