Competition Tribunal conditionally approves Altech"s acquisition of Namitech
The Competition Tribunal has today, 5 February 2004, followed the Competition
Commission"s recommendations and approved the transaction between Allied
Technologies Limited (Altech) and Namitech Holdings Limited, subject to the
following conditions:
1. That the merging parties dispose of the Africard division, with the
exception of the personalization bureau, to an independent purchaser
approved by the Competition Commission, which possesses the financial
resources, proven expertise and the incentive to maintain the divested
business as a viable and active competitive force in competition with the
merging parties.
2. That the merging parties terminate Altech"s exclusive right to distribute
Datacard personalization equipment spares and/or solutions into the South
African market."
The Commission initially recommended a prohibition of Altech"s proposed
acquisition of NamITech, which is a horizontal merger. Their concern was that
the merger would result in a monopoly in the market for the manufacture and
supply of secure PVC cards as well as in the market for the manufacture and
supply of non-secure PVC cards. In November 2003, the parties negotiated a
settlement agreement with the Commission, in which they agreed to dispose of
the Africard division and terminate the exclusive relationship with Datacard
which they said would address the anti-competitive consequences of the merger.
On the basis of this the Commission revised its assessment of the transaction
and recommended a conditional approval.
The Tribunal will issue the reasons for the order in due course.
Issued by:
Jane Sussens
Communications Advisor
Tel: (011) 483 2687
Cell: 082 9200 875
Fax: (011) 483 2686
E-Mail: jane.sussens@mweb.co.za
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: 05/02/2004 05:22:02 PM
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