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The Competition Commission of South Africa (CCSA) held its ordinary meeting on Tuesday, 18 April 2023, to review and take decisions on merger notifications brought before the Commission by corporate applicants, in terms of the Competition Act (89 of 1998) as amended. These matters include but are not limited to mergers and acquisitions. 

1. MERGERS AND ACQUISITIONS

1.1 Lemken Landtechnik GmbH (“Lemken”)/ Equalizer Holdings (Pty) Ltd (“Equalizer Holdings”)/Equalizer AG (Pty) Ltd (“Equalizer AG”) (“Target Firms”)

The Commission has approved the proposed transaction whereby Lemken intends to acquire the Target Firms, with conditions. 

The primary acquiring firm is Lemken, a limited liability company duly incorporated under the laws of the Federal Republic of Germany. Lemken is controlled by Lemken GmbH a company incorporated under the laws of Germany. In South Africa, Lemken controls LEMKEN South Africa (Pty) Ltd (“Lemken South Africa”). Lemken GmbH and all the firms it directly or indirectly controls will be referred to as the “Lemken Group”.

The Lemken Group designs, manufactures and sells agricultural machinery, services and spare parts for soil cultivation, planting/seeding technology, and crop protection worldwide. Lemken does not sell directly to end users (farmers). Instead, all products are distributed via independent dealerships.

The primary target firms are Equalizer Holdings and Equalizer AG (the “Target Firms”). Equalizer AG is a wholly owned subsidiary of Equalizer Holdings. Equalizer Holdings is in turn controlled by GS Jumani (Pty) Ltd. The Target Firms do not control any firms.

The Target Firms specialise in the design, manufacture, and global distribution of planting and seeding equipment for grain production. 

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. To remedy public interest concerns resulting from the merger, the merging parties have agreed to: (i) expand the local production operations of the Target Firms, post-merger; (ii) invest in capital expenditure in the target firms by June 2025 to expand the operations of the Target Firms and (iii) increase employment at the Target Firms.  

1.2 Generous Consultants Proprietary Limited (“Generous Consultants”)/ Blend Property 12 Proprietary Limited (“Blend Property 12”) in respect of a letting enterprise known as 22 Dan Jacobs (the “Target Property”)

The Commission has approved the proposed transaction whereby Generous Consultants intends to acquire the Target Property from Blend Property 12, without conditions.

The primary acquiring firm is Generous Consultants, a newly established property investment company with its primary activity being to hold the property being purchased which forms part of the acquiring group. 

The primary target firm is Blend Property 12 in respect of the rental enterprise known as 22 Dan Jacobs (the “Target Property”). 

The Commission found that the proposed transaction is unlikely to result in substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any substantial public interest concerns. 

Issued by Siyabulela Makunga, Spokesperson on behalf of The Competition Commission of South Africa