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BAW
BAW
Barloworld - ACCC Rejects Acquisition of Wattyl by Barloworld
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(ISIN: ZAE000026639)
("Barloworld or the Company")
ACCC rejects acquisition of Wattyl by Barloworld: offer will consequently lapse
The Australian Competition and Consumer Commission (ACCC) has announced that the
proposed takeover of Wattyl Limited by Barloworld Limited would, in the opinion
of the ACCC, substantially lessen competition in the Australian architectural
and decorative paint market.
Commenting on the announcement Barloworld CEO Tony Phillips said: "The ACCC"s
position is disappointing. We believe that our proposal would have been good for
the Australian public and the industry. It would have revitalised consumer
choice by creating a vigorous competitor to the current market leader and also
stimulated market growth. We believe that the divestment proposals we presented
to the ACCC would have addressed their competition concerns. However they now
want us to go further and divest of even more assets. This would have destroyed
the business logic of the deal. Accordingly, given that ACCC approval was a
condition and taking into account the commercial considerations, we will be
letting our offer lapse on 20 July."
Barloworld has cooperated fully with the ACCC throughout the period of the offer
for Wattyl and exchanged a very substantial amount of information with them. The
company responded to their initial findings issued on 23 March by offering
substantial undertakings to divest its Bristol brand and associated Bristol
assets including the greater part of its Bristol store network and a
manufacturing plant. Potential purchasers included a number of established
industry participants.
In conclusion Phillips commented; "As we clearly explained to the ACCC in our
discussions with them, the consequence of their decision is that it will not be
"business as usual" for our coatings interests in Australia. We are now pursuing
options to restructure our business and as a result, reduce our investment in
the country. Notwithstanding this, we remain committed to the Asia-Pacific
region and will continue to pursue a number of other avenues for expansion in
this important area of the world."
For further information contact Rowan Goeller, Head of Investor Relations,
Barloworld Limited
on +27 11 445 1300 or e-mail rowang@barloworld.com
For more information on Barloworld visit www.barloworld.com
Sandton
06 July 2006
Sponsor
J.P. Morgan Equities Limited
Date: 06/07/2006 08:04:11 AM Produced by the JSE SENS Department
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