Competition Tribunal approves Daun Kolossus merger
PRESS RELEASE
29 July 2003
The Competition Tribunal today, 29 July 2003, approved the merger between Daun
et Cie AG and Kolosus Holdings Ltd subject to the condition that Kolosus may not
retrench more than 150 employees in any "affected firm", for a period of one
year after the date of its order regardless of whether such retrenchments are
occasioned as a result of the merger or arise in the ordinary course of
business. For the purpose of the order an "affected firm" is any firm within the
Kolosus Group, or which is added to the Kolosus Group during the period, and
which operates in the hide trading, primary tanning or automotive tanning
markets.
In their submissions to the Tribunal, the South African Clothing and Textile
Workers Union (SACTWU) and the South African Food and Allied Trade Union
(SAFATU) did not oppose the transaction but expressed concern and sought
assurances that job losses as a consequence of the merger would be minimised.
The merging parties" initial submission indicated that the merger would, at
worst, result in 150 job losses. In the course of the hearing, however, the
parties acknowledged that restructuring in the wake of the merger, necessitated
by financial and efficiency considerations, would ultimately determine the total
number of jobs lost.
In line with the statutory requirement that it consider public interest
implications of mergers, the Tribunal has imposed a condition to ensure that job
losses do not exceed the level forecast by the parties in their merger
notification.
The full reasons for the Tribunal"s decision to approve the merger subject to
the abovementioned conditions will be provided in due course.
Issued by: Jane Sussens
Communications Advisor
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
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