Merger between Distillers Corporation (SA) Ltd and
MEDIA RELEASE
Merger between Distillers Corporation (SA) Ltd and Stellenbosch Farmers Winery
Group Ltd.
The Competition Tribunal has found today, 6 February, that the merger between
Distillers Corporation (SA) Ltd and Stellenbosch Farmers Winery Group Ltd - the
merger which has resulted in the formation of Distell Ltd - is likely to cause a
substantial lessening of competition in only one of the markets implicated in
the transaction. This is the market for proprietary spirits. This segment of
the alcoholic beverages market incorporates medium priced brandy, whisky, gin,
vodka and cane brands, including some of South Africa`s - and the world`s - best
known spirit brands. Distell enjoys a very significant share of this market and
barriers to new entry are extremely high.
A further hearing will be convened for the purpose of determining an appropriate
remedy. Any potential remedy imposed, whether behavioural or structural, will
be confined to that market in which the panel has determined that there is a
likely to be a substantial lessening of competition.
The detailed reasons for our decision contains certain information designated
confidential. We have handed these reasons to both the Competition Commission
and Distell. A non-confidential version will be prepared and will be made
publicly available prior to the commencement of the remedy hearing.
Issued by : Jane Sussens
Jane Sussens PR
Tel: (011) 483 2687
Cell: 082 9200 875
Fax: (011) 483 2686
On Behalf of: Shan Ramburuth
CEO
The Competition Tribunal
Tel: (012) 482 9204
Fax (012) 482 9201
Cell: 083 3571 685
E-Mail: shanr@comptrib.co.za
www.comptrib.co.za
Date: 06/02/2003 05:32:47 PM Produced by the JSE SENS Department
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