/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Tribunal will hear a proposed settlement agreement between a Netherlands-based seed potato breeder, its exclusive South African distributor and the Competition Commission.
 
The Commission referred HZPC Holland B.V. (HZPC) and Wesgrow Potatoes (Pty) Ltd (Wesgrow) to the Tribunal in 2017, for alleged anti-competitive conduct in relation to the exclusive supply of the Mondial seed potato varietal in South Africa.
 
The proposed settlement agreement will finalise the matter if it is made an Order of the Tribunal. The two companies do not admit to infringing the Competition Act and no administrative penalty is proposed. However, the companies do provide several undertakings.

RCS credit lender to acquire portion of Edcon Limited book debt  

In these two large merger transactions, RCS Cards (Pty) Ltd – an unsecured credit lending provider – seeks to acquire a portion of Edcon Limited’s book debt owned by Edcon (first transaction) and book debt owned by ABSA Bank Limited (second transaction).
 
The Commission contacted various competitors and retailers who did not raise any concerns regarding the proposed transaction, save for one competing retailer who has asked for their identity to remain confidential.
 
The retailer is concerned that post-merger RCS will become the largest store credit provider in SA and a dominant player in the store credit card market. It believes as a result of such dominance, RCS will be able to offer customer incentives and effectively gain a monopoly in the store credit card market.
 
The Commission, in its assessment, found that the concerns are without merit and concluded that the proposed transactions will not result in a substantial lessening or prevention of competition. It has recommended that the transactions be approved unconditionally.
 

SKG Towers intends to acquire sole control of Somnipoint property in Pretoria CBD 

This proposed transaction is a merger in the market for the provision of rentable office space in the Pretoria CBD. SKG Towers (Pty) Ltd intends to acquire the immovable property and rental enterprise known as Portion 1 of Erf 2909, Pretoria Township (target property).
 
The target property is wholly owned by Somnipoint and Vantage Mezzanine Fund II Partnership (Pty) Ltd (Vantage) who entered into a Facilities Agreement in 2014. Pursuant to the Facilities Agreement, Vantage agreed to make certain loan facilities available to Somnipoint. As security for the credit provided by Vantage, Somnipoint registered mortgage bonds over the target property in favour of Vantage.
 
Somnipoint subsequently defaulted under the Facilities Agreement. In 2019, Vantage obtained a court order against Somnipoint which awarded Vantage the right to sell the target property. As such, Vantage is acting on behalf of the target property in the current proposed transaction.
 
The Commission, which assesses large mergers before referring them to the Tribunal for a final decision, found the transaction is unlikely to lessen competition in the relevant market. Finding no other competition or public interest concerns, it recommended unconditional approval.
 

Barnes Group Holdings to acquire Group Five shares in Barnes Reinforcing

Barnes Group Holdings (Pty) Ltd (Barnes Holdings) seeks to acquire Barnes Reinforcing (Pty) Ltd (BRI) in this proposed large merger transaction.
 
Barnes Holdings is jointly controlled by two individuals who also have joint control of BRI together with Group Five Construction (Pty) Ltd. The two individuals, therefore, intend to acquire Group Five’s shares in BRI.
 
Barnes Holdings is active in the supply of wire, the manufacturing of steel tubes and pipes, the manufacturing of black galvanised wire, the production and distribution of fencing posts, stays and gates and the distribution of diamond mesh.
 
BRI manufactures and supplies reinforcing steel and mesh products. It cuts, bends and installs reinforcing steel products.
 
The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any local market and has recommended unconditional approval.
 

 Tribunal to hear merger in market for manufacture, supply of masterbatches

Ferro SA (Pty) Ltd (Ferro), a private company wholly controlled by Bud Chemicals and Minerals (Pty) Ltd, intends to acquire Performance Colour Systems (PCS), a private company and trading division of Speed Bird Investment Holdings (Pty) Ltd (Speed Bird).
 
Ferro manufactures and distributes, among others, porcelain enamel, prepared glazes and masterbatches which are used as a colourant in the manufacturing of plastic products.
 
PCS manufactures, imports and supplies colour masterbatches, pigment powder, pastes and liquid concentrates. 
 
The Commission found that the proposed transaction raises no competition or public interest concerns and recommended approval without conditions.

Agile Capital Four to acquire Averge Technologies and K2019302693 (SA)

This matter contains two transactions which were notified as one indivisible transaction. Agile Capital Four (Pty) Ltd (Agile) and two individual persons form the acquiring firm. The target firms are Averge Technologies (Pty) Ltd (Averge) and K2019302693 (SA) (Pty) Ltd (AVT2).
 
Agile is a newly established firm that does not have any activities. The controllers of Agile are active in private equity, management buy-outs and buy-ins and investment holdings in various sectors, among others.
 
The target firms are specialist distributors of products such as fibre optic components for telecoms, lithium batteries and overhead line equipment used in the energy sector.
 
The proposed transaction entails Agile's acquisition of certain minority protections which will confer control over Averge and AVT2 respectively. In respect of AVT2, the acquisition of certain minority protections will confer control over AVT2 in favour of the two individual persons who form part of the acquiring firm. The acquiring firm will acquire negative control over the target firms.
 
The proposed transaction did not raise any competition or public interest concerns and the Commission recommended approval without conditions.
 

Issued by The Competition Tribunal