| Thu 21 Oct 2010, 7:05 | | THEE - Outcome of Competition Tribunal Hearings - Proposed large merger |
|
JSE
THEE
THEE - Outcome of Competition Tribunal Hearings - Proposed large merger
between Imperial Holdings Ltd and CIC Holdings Ltd
OUTCOME OF COMPETITION TRIBUNAL HEARINGS
(Following is a guideline for journalists. The information can be used but
please do not quote Nandi Mokoena or the Tribunal)
Proposed large merger between Imperial Holdings Ltd and CIC Holdings Ltd
The Competition Tribunal heard the proposed large merger between the above
parties and approved the transaction unconditionally.
Background
Imperial intends to acquire the entire issued share capital of CIC. On
implementing the transaction, CIC will be a subsidiary of Imperial and will be
de-listed from JSE. Imperial is a JSE listed firm which conducts a wide range
of activities relating to transportation including integrated logistics
solutions, car rental, car sales, aviation operations, tourism and financial
services. CIC, on the other hand, is a JSE listed Namibian company that is
engaged in distribution, merchandising, staffing solutions and head office
functions.
The merging parties activities overlap in the market for merchandising and
sales services, which they conduct through their respective businesses Mercor
(within Imperial) and VMS Group (within CIC).
The Competition Commission assessed the transaction and concluded that no
significant competition concerns would arise from the proposed merger.
Accordingly, the Commission recommended that the Tribunal approve this merger
without conditions.
The Tribunal heard this merger earlier today and handed down its decision
during the day.
Competition Commission v SAB
Today the Competition Tribunal heard the evidence of Mr Peter Dodson, CEO
Metcash Trading Africa, and excused Mr Darron Swersky, MD Picardi Rebel, from
presenting evidence until a later date. Mr Swersky was excused after SAB
argued that there is certain electronic information still outstanding which Mr
Swersky is required to provide to enable SAB to conduct a thorough cross-
examination. Arrangements were made for Swersky to provide this information at
a later stage.
Before the hearing started, SAB argued that the Commission had not properly
made out its case clearly in respect to its allegations that SAB discriminated
between its appointed distributors and independent distributors. The Tribunal
requested SAB to formally present its argument, and the Commission its answer,
and the application will be heard on Friday 22 October.
Background
Following a 3 year investigation into SAB`s activities, on 21 December 2007,
the Competition Commission referred to the Tribunal a complaint against SAB
and its appointed distributors in which it alleged that:
SAB`s agreements with its appointed distributors had the impact of dividing
markets, in contravention of the Competition Act;
SAB favoured its own distributors at the expense of independent distributors
and, in that way, placed independent distributors at a disadvantage in the
market; and
SAB had abused its dominance by requiring retail outlets not to deal with
SAB`s competitors, thereby placing SAB`s competitors at a disadvantage in the
beer market.
The parties have argued a number of technical issues in the case between
December 2007 and now. These have resulted in, amongst other things, the
parties agreeing to only hear the case relating to the distributors for the
time being. At a later stage, the Tribunal will hear the case relating to
SAB`s alleged abuse of dominance.
The hearing on the Commission`s allegations began on 11 August 2010 and is
continuing according to the following timetable:
- the cross examination of Peter Dodson, CEO Metcash Trading Africa will
continue on 21 and 22 October 2010;
- the remaining witnesses in the case will be heard from 28 March - 15
April 2011; and
- the dates for closing arguments will be 3, 4 and 5 May 2011.
Issued By:
Nandi Mokoena
PR Consultant: Competition Tribunal
Cell: +27 (0) 82 399 1328
E-mail: NandisileM@live.co.za
On Behalf Of:
Lerato Motaung
Registrar: Competition Tribunal
Tel: (012) 394 3355
Cell: +27 (0) 82 556 3221
E-Mail: LeratoM@comptrib.co.za
Date: 21/10/2010 07:05:03 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
