The proposed transaction entails the formation of an economic alliance between WBHO Construction (Pty) Ltd and Trencon Construction (Pty) Ltd. Post-merger, the companies intend to operate as a single economic entity i.e. as part of the WBHO Alliance. Trencon will replace Fikile as an Emerging Contractor in the WBHO Alliance.
 
The alliance is the result of a settlement agreement concluded between several construction companies and the Government in October 2016 (as represented by the Ministers of Rural Development and Land Reform, Economic Development, Public Works and Transport). The settlement agreement, entered into by several companies, followed a Commission investigation into widespread collusion in the industry over several years.
 
The 2016 settlement agreement made provision for the establishment of a Fund to develop and enhance the Construction Industry and in particular, transformation objectives. The Trustees of the Fund are made up of construction companies who are party to the settlement agreement as well as government representatives.
 
The Commission, which assesses large mergers before referring them to the Tribunal, concluded that the transaction does not raise any competition concerns. However, it was of the view that further measures are required to ensure that the Fund is not used as an information sharing platform.
   

Consortium seeks to acquire 11 businesses
 
In this transaction, Bachique 746 (Pty) Ltd (Bidco) seeks to acquire eleven firms which fall under the Afrikelp, Efekto and Marltons businesses.
 
Bidco was established for purposes of this transaction. It is controlled by a consortium consisting of RMB Ventures Seven (Pty) Ltd (RMBV), BoE Private Equity Investments (Pty) Ltd (BoE) and the management of the target businesses.
 
The Afrikelp, Efekto and Marltons businesses form part of the broader Ascendis Biosciences Division, which is controlled by Ascendis Health Ltd.
 
Afrikelp is involved in processing seaweed extracts (known as kelp) for the production and supply of plant nutrition products used in the agriculture and horticulture sectors. Efekto supplies home and garden pest control products, as well as garden fertiliser and plant food products, sold under the Wonder Brand). Marltons supplies a range of pet products and accessories except for pet food for dogs and cats. Most of its products are imported.
 
In its assessment of the proposed merger, the Commission concluded that there were no competition or public interest concerns. It therefore recommended to the Tribunal that the transaction be approved without conditions.
 
 
SPAR Group seeks to acquire Western Gruppe Trading assets through merger  
 
In this proposed merger, the Spar Group Ltd seeks to acquire 22 assets including SPAR branded supermarkets, properties and a distribution centre from Western Gruppe Trading (Pty) Ltd and its subsidiaries.
 
The assets are used to operate SPAR branded grocery and liquor outlets/franchises in the Eastern Cape.
 
The Commission found no employment or public interest concerns as the merging parties said that the proposed transaction would not result in any job losses or retrenchments. The Commission has recommended to the Tribunal that the proposed merger be approved without conditions.
 

Issued by The Competition Tribunal