| Mon 1 Nov 2010, 12:53 | | THEE - Notice of Upcoming Competition Tribunal Hearings |
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JSE
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please do not quote Nandi Mokoena or the Tribunal)
Cases Settlement agreement between the Competition Commission and
Amalgamated Scrap Metals
Settlement agreement between the Competition Commission and
Abbedac Metals
Settlement agreement between the Competition Commission and
Universal Recycling
Proposed large merger between Daybreak Farms and Rossgro
Proposed large merger between Atterbury and Abacus
Proposed large merger between Absa and Alexander Forbes
Homeplan JV
Proposed large merger between Clident and Savemoor
Date Wednesday, 03 November 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
1. Settlement agreements with scrap metal dealers
On Wednesday the Tribunal will hear 3 proposed settlements that the Competition
Commission concluded with Abbedac Metals cc, Universal Recycling Company and
Amalgamated Scrap Metals Recycling respectively. All 3 companies deal in scrap
metal which is used as an input in the manufacture of steel and steel products.
These settlements follow the Commission`s investigation into collusion in the
scrap metal industry. Through this investigation, which included a raid on the
offices of several scrap metal dealers, the Commission found that Abbedac,
Universal, Amalgamated Metals and others had agreed on the prices at which they
would buy different types of scrap metal. During the Commission`s investigation,
one of the respondents, Reclamation Group, approached the Commission with a view
to admitting the allegations against it and settling the case. The Tribunal
confirmed this settlement in May 2008.
Since then, Abbedac, Universal and Amalgamated Metals have also come forward and
admitted their role in the collusion. They have agreed to pay penalties of R4,9
million, R15,5 million and R3,2 million respectively and to help the Commission
in its prosecution of other members in the scrap metal cartel.
2. Proposed large merger between Daybreak Farms and Rossgro Chickens
Daybreak intends to acquire the business of Rossgro as a going concern. Daybreak
is involved in agricultural processing and food production. Rossgro`s main
activities include the operation of a poultry abattoir as well as the processing
and sale of poultry products, namely fresh and frozen chicken portions, whole
birds and frozen tray packs.
The Commission has recommended that the Tribunal approve this merger without
conditions.
3. Proposed large merger between Atterbury Investment Holdings (AIH) and
Abacus Property Holdings (APH)
AIH, an investment firm that manages various assets and properties in the
commercial, retail, industrial and residential sectors, intends to acquire APH -
a dormant entity held by the Abacus Trust. The Abacus Trust invests in and
develops properties, particularly regional shopping centres.
Although AIH is an investment firm, its key focus is investing in rentable
office space while APH focuses specifically on the rental of large retail
developments. Through this merger the parties felt AIH`s retail property, for
example Design Square in Brooklyn, would benefit from the expertise APH brings.
At the same time, the merger will enable the Trust to succeed in consolidating
its position as a holder of fully developed and trading assets on a long term
basis.
The Commission has recommended that the Tribunal approve this merger without
conditions.
4. Proposed large merger between Clident No. 1003 and ICC Mayibuye trading as
Savemoor Cash and Carry
In terms of the proposed transaction Masscash, through its subsidiary Clident
No. 1003, intends to acquire control of the business of Savemoor. Savemoor is
both a retailer and wholesaler of grocery products to customers in the LSM 2-6
socio economic groups. Masscash in turn is a wholly owned subsidiary of
Massmart. Through its various divisions Massmart is involved in the retail and
wholesale of food, liquor and general merchandise throughout South Africa.
The Commission has recommended that the Tribunal approve this merger without
conditions.
5. Proposed large merger between Absa Bank and Alexander Forbes Homeplan JV
Absa intends to acquire sole control over the joint venture, Alexander Forbes
HomePlan, which it currently controls with Alexander Forbes Financial Services
(Pty) Ltd. It will conduct the transaction by acquiring the PBL (pension backed
loans) Book from Homeplan and transferring all the staff employed at Homeplan.
The parties have agreed to dissolve and terminate HomePlan after the transaction
is implemented.
The Commission has recommended that the Tribunal approve this merger without
conditions.
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: 01/11/2010 12:53:02 Produced by the JSE SENS Department.
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