Latest decisions by the Competition Commission
1. Key decisions on Mergers and Acquisitions
1.1 The Humansdorp Co-Operative Ltd v PSP Investments CC and part of the business of Alfred County Investments CC
The Commission has approved, without conditions, the intermediate merger whereby The Humansdorp Co-Operative Ltd (Humansdorp) intends to acquire PSP Investments CC (PSP) and part of the rental enterprise owned by Alfred County Investments CC (ACI) (collectively the “target business”).
Humansdorp mainly operates in the south-western part of the Eastern Cape and owns 16 farming retail stores. The stores provide farming requisites and other agricultural inputs. Humansdorp also owns a silo complex that provides storage and other grain handling services at its silos.
In addition, it also sells irrigation products throughout the Eastern Cape and provides financial services for its customers’ credit needs.
PSP is a vertically integrated business specialising in the production of animal feed. PSP is also active in grain trading, ownership of storage silos and operation of one farming requisite store located in Kokstad. ACI’s rental business consists of the building and properties currently occupied by PSP.
The Commission finds that the proposed merger is unlikely to substantially prevent or lessen competition in the markets for farming requisite stores, grain storage and animal feed production. In addition, there are no public interest issues that arise as a result of the proposed merger.
1.2 Worksort Trade and Invest (Pty) Ltd, a company in the process of changing its name to Sunshine Invest (Pty) Ltd v Sunshine Sugar Supplies (Pty) Ltd
The Commission has approved, without conditions, the intermediate merger whereby Worksort Trade and Invest Proprietary Limited, a company in the process of changing its name to Sunshine Invest Proprietary Limited (Sunshine Invest) intends to acquire Sunshine Sugar Supplies (Pty) Ltd (SSS).
The primary acquiring firm is Worksort Trade and Invest Proprietary Limited, which is in the process of changing its name to Sunshine Invest. Sunshine Invest is a shell company and does not control any firms. It has been established for the purpose of being the holding company of the primary target firm.
Sunshine Invest will be controlled by ETG Agro Products Proprietary Limited (ETG Agro). ETG Agro trades sugar in bulk to wholesalers and brokers. It sources sugar from Brazil, Thailand, Malaysia and India and markets and distributes sugar to countries throughout Africa, Asia and the Middle East. ETG does not currently distribute sugar in South Africa.
SSS is the marketing and sales partner of Umfolozi Sugar Mill (USM). It handles third party sales, marketing and distribution of brown sugar on USM’s behalf to retailers and wholesalers.
The Commission is of the view that the proposed transaction is unlikely to substantially prevent or lessen competition in any market. In addition, the proposed transaction does not raise any public interest concerns.
2. Non Referrals: The Commission has taken a decision to non-refer (not to prosecute) the following cases:
2.1 FJP Lategan v Umalusi
The Commission is of the view that the conduct complained of does not contravene the Competition Act.
2.2 Mopani Pharmacies v Medical aid schemes in South Africa and designated service providers
The Commission is of the view that the conduct complained of does not contravene the Competition Act.
For more information please contact:
Sipho Ngwema
Tel: 012 394 3493
Cell: 078 048 1213/081 253 8889
E-mail: SiphoN@compcom.co.za
