[2019-05-08] Angola’s Banco Económico takes stake in Tranquilidade insurance company

Source: Macauhub

Angolan bank Banco Economico plans to acquire the shareholding of Seguradora Unidos in Tranquilidade – Corporação Angolana de Seguros, the Regulatory Competition Authority (ARC) announced in a statement released in Luanda.

The statement said notification of the operation was made on 25 March, under the terms of the Competition Law, approved in March 2018, which requires prior submission of mergers of companies that achieve a market share or annual turnover higher than maximum limits set out.

The regulation of the Competition Law makes prior notification of operations in which a market share of 50% or more “is acquired, created or strengthened,” or where this occurs when the market share is between 30% and 50% and individual turnover in Angola in the last year by at least two companies totalled more than 450 million kwanzas.

Situations in which the group of companies involved in the merger has carried out business in Angola in the last year, in an amount of more than 3.5 billion kwanzas, are also subject to prior notification, according to state newspaper Jornal de Angola.

Banco Económico inherited the assets of the bankrupt Banco Espírito Santo Angola, one of the 12 largest commercial banks operating in Angola, while Tranquilidade – Corporação Angolana de Seguros, which started operating in 2012, operates in the insurance, reinsurance and investment, stakeholdings, representations, pension fund and professional training markets.