Portfolio Committee on Economic Development congratulates the Minister and the Competition Authorities
The Portfolio Committee on Economic Development welcomes the approval of the merger between SAB Miller and Coca-Cola by the Competition Authorities. This comes after 18 months of intensive negotiations and meetings with affected stakeholders namely the “smaller players” in the bottling industry.
The Committee notes the intervention of the Minister of Economic Development, Mr Ebrahim Patel, in ensuring that the public interest was taken into account and that the merger benefits all parties concerned.
The conditions of the merger will see AB inBev and Coca-Cola jointly committing R1.8 billion to benefit small scale farmers, small businesses and support for young entrepreneurs. The creation of 2 600 new jobs and that there will be no job losses in the next five years is welcomed. The smaller bottling companies will see them getting access to refrigerator and cooler space at local outlets and retail stores alongside the products of Coca Cola Beverages Africa.
The Chairperson congratulates the Economic Development Department under the leadership of Minister Patel on the successful negotiations that have brought about the final agreement. Said the Chairperson: “We don’t doubt the effect of this on the previously disadvantaged individuals and emerging entrepreneurs especially the youth and women.”
The Portfolio Committee will continue to exercise its oversight authority and will closely monitor the terms of the merger in the months to come.
For media enquiries or interviews with the Chairperson, please contact:
Sureshinee Govender (Ms)
Parliamentary Communication Services
Tel: 021 4032289
Cell: 081 704 1109
E-mail: sugovender@parliament.gov.za
