The Competition Tribunal has confirmed an agreement between the Competition Commission and Cargill RSA (Pty) Ltd to settle Cargill's contravention of the Competition Act for failing to notify a merger.
Cargill (Pty) Ltd notified a merger with the Commission, in terms of which Cargill would acquire the entire issued share capital of NuTec Southern Africa (Pty) Ltd. During the Commission's investigation, it emerged that Cargill had previously acquired 100% of the issued share capital of Sugar Direct (Pty) Ltd, which had also constituted a notifiable merger. The Commission was not, however, notified of this merger. Cargill settled the matter with the Commission ― it admitted its contravention, agreed to implement a competition law compliance programme, and agreed to pay an administrative penalty of ZAR 100,000.
Christopher Kok, senior associate at Webber Wentzel, says: "This matter emphasises the importance of ensuring compliance with the Competition Act as non-compliance during one transaction could have repercussions for subsequent transactions. It also shows that the Commission undertakes a thorough investigation of all notified mergers."