Barloworld Limited - Update on Barloworlds offer f
BAW
BAW
Barloworld Limited - Update on Barloworld"s offer for Wattyl
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(ISIN: ZAE000026639)
("Barloworld")
UPDATE ON BARLOWORLD"S OFFER FOR WATTYL
Shareholders are referred to announcement of 13 February 2006 detailing
Barloworld"s intention to make a recommended cash offer for all the fully paid
ordinary shares in Wattyl Limited for A$3.80 per share ("the offer"). The
announcement stated that the Australian Competition and Consumer Commission
("ACCC") would undertake market enquiries to address competition concerns.
Yesterday, the ACCC released a "Statement of Issues" which summarises its
position on the offer.
Barloworld notes the early release by the ACCC of its Statement of Issues in
connection with the offer. After conducting market enquiries, the ACCC has
formed the preliminary view that a merger of the second and third largest
suppliers of architectural and decorative paint has the potential to lead to a
significant reduction in competition and increased prices.
As is pointed out in the Statement of Issues, it is the ACCC"s preliminary view
only and not a final decision about the proposed acquisition. The ACCC will now
proceed to a second phase of further market enquiries pursuant to the ACCC"s
Merger Review Process Guidelines. We note the ACCC"s guidelines state:
"Providing a Statement of Issues does not indicate that the ACCC is likely to
oppose the merger or that it will not ultimately receive approval."
The issues raised in the Statement of Issues are matters which Barloworld is
discussing with the ACCC. Barloworld remains convinced of the benefits to the
industry and consumers of the merger and will continue to work with the ACCC to
address its concerns.
If appropriate, Barloworld will provide certain undertakings to the ACCC.
Media enquiries please contact:
Mark Drewell, Head of Corporate Communications, Barloworld Limited on +27 11 445
1155 or e-mail mdrewell@barloworld.com
24 March 2006
Sponsor: J.P.Morgan Equities Limited
Date: 24/03/2006 04:53:17 PM Produced by the JSE SENS Department
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