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The Competition Commission and two companies involved in manufacturing and distributing underground mine support bags (known as cementitious polypropylene-based mining bags) will ask the Tribunal to confirm their settlement agreement as an order of the Tribunal.
 
The Commission alleges that around 2009, Timrite (Pty) Ltd and Tufbag (Pty) Ltd concluded a Product Supply Agreement in terms of which Tufbag had an exclusive right to manufacture mining bags and Timrite had an exclusive right to distribute and on-sell mining bags manufactured by Tufbag.
 
It is the Commission’s view that this conduct may have amounted to market division by allocating specific types of services, in contravention of the Competition Act.
 
Timrite and Tufbag have agreed to pay, without prejudice, a fine of R1 000 000 (one million Rand). However, the companies do not admit that their conduct contravened the Competition Act. 
 
In terms of the settlement, the companies also agree to: refrain from engaging in any prohibited practice in future or any conduct that may contravene the Competition Act; circulate a statement, summarising the content of the agreement, to their managers and directors; and implement and monitor a competition law compliance programme.   
 
Background
 
In June 2017, Timrite sought to acquire the mining bag division of Tufbag but the merger was prohibited by the Commission. After reconsideration, the Tribunal approved the merger with conditions in February 2018. 
 
The Tribunal will hear the matter tomorrow.
 

Tribunal to hear international transaction involving container liner shipping services

 
This proposed transaction was notified in Italy, Spain, Austria and the Common Market for Eastern and Southern Africa (COMESA).
 
Marinvest S.r.l. (Marinvest), a wholly owned subsidiary of SAS Shipping Agencies Services S.a.r (SAS Sarl), seeks to acquire Ignazio Messina & S.p.A (IM) and RORO Italia S.r.l. (SPV), which are wholly owned by Gruppo Messina S.p.A. (GM).
 
Marinvest, a holding company, operates through the MSC Group which is a global maritime transport company. Of relevance to the proposed transaction is the cargo maritime transport (container-liner services) activities of MSC.
 
Globally, IM is a shipping company that provides liner-shipping services. In South Africa, IM’s activities are limited to container-liner services and Roll-On-Roll-Off shipping services.
 
The Commission, which investigates large mergers before referring them to the Tribunal for a final decision, recommended that the proposed transaction be approved with conditions.
 

Mahindra & Mahindra Limited, Ford Motor Company intend to establish a joint venture

Mahindra & Mahindra Limited (M&M) and the Ford Motor Company (FMC) intend to establish a joint venture. Upon implementation of the proposed merger, M&M and FMC will have a joint venture in the target business, Ardour Automotive Private Limited (Ardour).
 
M&M is a public company registered in India. Mahindra Group has interests across various sectors including automotive. Locally, Mahindra SA sells passenger vehicles, tractors, construction equipment and generator sets. It recently set up a vehicle assembly facility in KZN.
 
FMC, a public company registered in the US, is an automobile company. In SA it is involved in the manufacture, wholesale and retail of vehicles. Ford SA has dealerships across eSwatini, Namibia, South Africa and Botswana. It exports vehicles to Europe, the Middle East and Africa and imports the Figo and EcoSport brands from India.
 
Ardour, a newly formed entity incorporated in India for the purpose of the proposed transaction, will house the business of Ford India Private Limited (FIPL). Ardour will operate the target business of FIPL which involves exporting vehicles manufactured in India across the world.
 
The Commission is of the view that the proposed transaction is unlikely to lessen competition in the relevant market and recommended that the proposed merger be approved without conditions.

Issued by Competition Tribunal