| Wed 3 Nov 2010, 15:36 | | THEE - Outcome of Competition Tribunal hearings on 3 November 2010 |
|
JSE
THEE
THEE - Outcome of Competition Tribunal hearings on 3 November 2010
OUTCOME OF COMPETITION TRIBUNAL HEARINGS on 3 November 2010
(Following is a guideline for journalists. The information can be used but
please do not quote Nandi Mokoena or the Tribunal)
1. Settlement agreements with scrap metal dealers
The Competition Tribunal confirmed the settlement agreements between the
Competition Commission and scrap metal dealers. Universal`s penalty was adjusted
from R15,5 million to R18 million after a previous calculation error.
Background
This morning the Tribunal heard 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
The Tribunal approved this merger unconditionally.
Background
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 recommended that the Tribunal approve this merger without
conditions.
3. Proposed large merger between Atterbury Investment Holdings (AIH) and
Abacus Property Holdings (APH)
The Tribunal approved this merger unconditionally.
Background
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 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
The Tribunal approved this merger unconditionally.
Background
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 recommended that the Tribunal approve this merger without
conditions.
5. Proposed large merger between Absa Bank and Alexander Forbes Homeplan JV
The Tribunal approved this merger unconditionally.
Background
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 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: 03/11/2010 15:36:01 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.
