Competition Commission approves Swan-CMB merger under strict conditions

Market Consolidation

The Competition Commission has officially approved the merger between Swan Securities Ltd (SSL) and Capital Market Brokers Ltd (CMB). While the move signals further consolidation within the stockbroking sector, the approval comes with a suite of mandatory behavioural conditions designed to protect investors and maintain market integrity.

Navigating a Concentrated Market

Both SSL and CMB are prominent investment dealers licensed by the Financial Services Commission (FSC) and serve as key pillars of the Stock Exchange of Mauritius (SEM). Their primary role involves the buying and selling of securities for a diverse range of local and international clients.

The Commission’s assessment, led by Executive Director Mr Vipin Naugah, highlighted a growing trend of concentration in the industry. Over the past decade, several mergers have reduced the number of active stockbroking providers. Following this transaction, the number of players will drop from seven to six.

The Executive Director initially flagged three primary risks associated with this increased concentration:

Price Hikes: Concerns that existing clients might face higher fees as pricing structures are aligned.
Worsening Terms: The potential for a “race to the bottom” regarding contractual terms and conditions for smaller clients.
Stagnation in Innovation: A fear that reduced rivalry and potential staff reductions could lower the quality of service and value-added offerings.

Safeguarding the Investor

To prevent the merger from “substantially lessening competition,” SSL and CMB offered a series of binding undertakings. These commitments ensure that the benefits of the merger do not come at the expense of the consumer.

Under the approved terms, the merged entity has committed to:

1. Price Protection: Fees for existing clients will not be increased unless legally mandated or justified by external costs.
2. Favourable Alignment: If the two firms have differing terms, the most favourable conditions will be applied to all existing clients.
3. No Retrenchment: Subject to employment laws, no staff will be let go as a direct result of the merger, preserving expertise and service capacity.
4. Client Mobility: Existing clients retain the absolute right to transfer their investments to another broker if they are unsatisfied with the new arrangement.

A balanced outlook

In his official statement, Mr Naugah noted that while the stockbroking market faces structural challenges due to its limited scale, consolidation must not undermine consumer interests. He praised the “cooperative approach” adopted by both firms and the close collaboration between the Competition Commission, the FSC, and the SEM.

With several major players still active in the market to provide competitive pressure, the Commission is confident that these safeguards will allow the merger to enhance service depth without stifling the competitive spirit of the Mauritian economy.

Mauritius Times ePaper Friday 13 February 2026