| Mon 25 Oct 2010, 14:38 | | THEE - Notice of upcoming Competition Tribunal Hearings |
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THEE
THEE - Notice of upcoming Competition Tribunal Hearings
NOTICE OF UPCOMING COMPETITION TRIBUNAL HEARINGS
(Following is a guideline for journalists. The information can be used but
please do not quote Nandi Mokoena or the Tribunal)
CASE(S) Proposed large merger between Macquarie Investment Holdings
No. 2 (Pty) Ltd and Macquarie AirFinance Ltd
Proposed large merger between Aveng (Africa) Ltd and Dynamic
Fluid Control (Pty) Ltd
Settlement agreement between the Competition Commission and
Flo-Tek Pipes and Irrigation (Pty) Ltd
Settlement agreement between the Competition Commission and
Swan Plastics CC
DATE Wednesday, 27 October 2010
TIME 10H00
PLACE The dti Campus
77 Meintjies Street
Mulayo Building, (Block C)
Sunnyside, Pretoria
Tel: +27 (0) 12 394 3300
Fax: +27 (0) 12 394 0169
Website: http://www.comptrib.co.za
Macquarie merger
Macquarie Investment Holdings (MIH), an Australian company, intends to acquire
sole control of Macquarie AirFinance (MAF), a firm based in Bermuda. While MIH
has no business activities in South Africa, its holding company, Macquarie,
provides specialist financial, banking, advisory, investment and funds
management services in South Africa through its various subsidiaries. MAF on the
other hand is a global aviation lessor, providing aircraft to airlines around
the world and asset management services to aircraft owners. MAF has no South
African subsidiaries but it owns 10 aircraft which are currently on lease to
SAA.
According to the merging parties, the basis for the merger is that airlines are
becoming an important part of MIH`s growth. MAF, in turn, will benefit from the
asset management expertise that MIH brings to the deal.
The Competition Commission considered the proposed merger and concluded that it
would not give rise to substantial competition concerns. The Commission has
therefore recommended that the Tribunal approve this merger unconditionally.
The Tribunal will hear the merger on Wednesday and make its decision.
Aveng Africa merger
Aveng Africa intends to acquire the entire issued share capital of Dynamic Fluid
Control (DFC), which is currently held by Standard Bank, Kagiso Strategic
Investments and DWS Investment Trust. Aveng Africa is a multi-disciplinary
construction and engineering company focused on infrastructure, energy and
mining. DFC manufactures and supplies industrial valves to the water and mining
industries.
The Commission assessed the merger and concluded that, although the operations
of the merging parties overlap in the valve market, the merger is unlikely to
lessen competition substantially in this area. The Commission also considered
the possible competition effects of the fact that DFC is already a supplier of
valves to two firms within Aveng Africa`s group, namely Keyplan and GLTA Mining,
but concluded that this too would not result in a substantial lessening of
competition.
Accordingly, the Commission has recommended that the Tribunal approve this
merger without conditions. The Tribunal will also hear this merger on Wednesday
and make a decision.
Two more settlements in the plastic pipes cartel
On Wednesday the Tribunal will hear 2 proposed settlements in the ongoing
plastic pipes cartel case. This time the Tribunal will consider settlement
agreements between the Commission and Flo-Tek Pipes, on the one hand, and the
Commission and Swan Plastics on the other.
Both Flo-Tek and Swan Plastics are firms that manufacture plastic pipes used in
the plumbing, civil and agricultural sectors and were accused by the Commission,
along with seven others, of price fixing and tender rigging. At the time, DPI
Plastics, also a plastic pipe manufacturer, assisted the Commission to conclude
its investigation by providing evidence of the collusion in exchange for
immunity from prosecution. Since the Commission referred its case to the
Tribunal, in February 2009, the Tribunal has confirmed one settlement agreement
- between the Commission and Marley Pipe Systems. In that settlement, Marley
admitted it had contravened the Competition Act and agreed to pay a penalty of
around R31 million, being 6% of its turnover for 2007.
In the settlement agreements which the Tribunal will hear this Wednesday, both
Flo-tek and Swan Plastics admit they have contravened the Competition Act. They
also agree to pay penalties of about R5 million and R7 million respectively,
being 6% of their turnovers for 2007. In addition, both parties undertake to
cooperate with the Commission`s prosecution of any other respondents in the case
and to implement compliance programmes designed to ensure that their employees
do not engage in such contraventions in future.
While DPI Plastics, Marley, Flo-Tek and Swan Plastics have provided the
Commission with information and evidence in the case, Gazelle Plastics (Pty)
Ltd, McNeil Mouling (Pty) Ltd and Andrag (Pty) Ltd deny the allegations of
collusion against them and are opposing the Commission`s case.
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: 25/10/2010 14:38:00 Produced by the JSE SENS Department.
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