Competition Commission recommends unconditional ap
for Tiger Brands-
Enterprise Foods merger
3 April 2003
Competition Commission recommends unconditional approval for Tiger Brands-
Enterprise Foods merger
The Competition Commission has referred a large merger between Tiger Brands Ltd
and Enterprise Foods (Pty) Ltd to the Competition Tribunal, recommending that
the proposed merger be approved unconditionally.
Tiger Brands already holds a 50% shareholding in Enterprise. The transaction
will allow Tiger Brands to acquire the remaining issued ordinary share capital
of Enterprise Foods from Foodcorp (Pty) Ltd. Foodcorp has told the Competition
Commission that it is seeking to exit non-core business ventures.
Mergers and Acquisitions Divisional Manager, Nkonzo Hlatshwayo, said that there
was no relevant product market overlap between the parties. The Tiger Brands
Group is involved in a diverse range of businesses and branded consumer
products. Enterprise manufactures chilled processed meat and canned meat
products. However, he said the Commission was of the view that the change from
joint to sole control does strengthen the vertical integration (up or down the
supply chain) between Tiger Brands, Enterprise and SPAR, which is a subsidiary
of Tiger Brands.
"Nevertheless," said Hlatshwayo, "we believe that this will not give rise to
customer and competitor foreclosure - the kind of anti-competitive behaviour
which may result from vertical mergers which can limit consumer choice or
competitors" ability to distribute products or services. Therefore, the
Commission concluded that the proposed merger would not give rise to a
substantial lessening of competition."
Hlatshwayo also said that there were no significant effects based on public
interest grounds.
ENDS
Prepared by: Beachhead Media & Investor Relations, Jennifer Cohen 011 214
2401 / 082 468 6469 / jennifer@bmsa.co.za
Dani Cohen 021 469 9000 / 082 891 0449 / dani@bmsa.co.za
On behalf of: The Competition Commission
Further info: Karin Coode, Head of Communications, 012 482 9079 / 083 357
1039 karinc@compcom.co.za
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