Last week, The Competition Commission of South Africa (CCSA), among other transactions, approved SABIC AN-EIHL deal and Cavalier’s acquisition of Grand Foods Meat, in terms of the Competition Act (89 of 1998) as amended. The full list of deals approved by the Commission is available here.
1. SABIC Agri-Nutrients Company (“SABIC AN”)/ ETG Inputs Holdco Limited (“EIHL”)
The Commission has recommended that the Tribunal approve the proposed transaction whereby SABIC AN intends to acquire EIHL from ETG World, without conditions.
The primary acquiring firm is SABIC AN, a company incorporated in accordance with the laws of the Kingdom of Saudi Arabia. SABIC AN is controlled by Saudi Basic Industries Corporation (“SABIC”). SABIC is in turn controlled by Saudi Arabian Oil Company (“Saudi Aramco”). In South Africa, Saudi Aramco controls SABIC South Africa (Proprietary) Limited (“SABIC SA”). SABIC AN and all the firms that directly or indirectly control it are collectively referred to as the “Acquiring Group”. The Acquiring Group is active in the production and supply of urea, which is used as input in the production of urea-blended fertilisers.
The Acquiring Group does not have a physical presence in South Africa for the supply of urea but supplies its customers from its operations in Saudi Arabia. The Acquiring Group only has a presence in South Africa for crude oil, refined oil, and chemical products.
The primary target firm is EIHL, a company incorporated in accordance with the laws of the United Arab Emirates. EIHL is controlled by ETG World. In South Africa, EIHL controls the following firms: (i) Kynoch Fertilizer (Pty) Ltd (“Kynoch”); (ii) Sidi Parani Proprietary Limited (’Sidi Parani”); (iii) Fermentech Proprietary Limited (“Fermentech’’); (iv) Profert Methven Road Proprietary Limited (“Profert Methven’’) and (v) Double Flash Investments Proprietary Limited (“Double Flash Investments”). EIHL and all the firms that it controls shall be referred to as the “Target Group”.
The Target Group imports, blends, and distributes fertiliser products in the Southern African Development Community (SADC), including South Africa. The Target Group does not produce urea but uses urea as an input in the production and supply of blended urea fertilizers. The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
The Commission further found that the proposed transaction does not raise substantial public interest concerns.
2. Cavalier Group of Companies Proprietary Limited (“Cavalier”)/ Grand Foods Meat Plant Proprietary Limited (“GFMP”)
The Commission has recommended that the Tribunal approve the proposed transaction whereby Cavalier intends to acquire GFMP from ECP Africa Fund, without conditions.
The primary acquiring firm is Cavalier. Cavalier is jointly controlled by SPE Mid-Market Fund I Partnership (“SPE Fund”) and the management shareholders of Cavalier (“Cavalier Management Shareholders”). The SPE Fund is wholly controlled by Sanlam Investment Management Proprietary Limited, which is ultimately controlled by Sanlam Limited (“Sanlam”).
Cavalier is a vertically integrated South African meat producer with a national footprint that conducts its activities in the procurement, packaging, sale, and distribution of red meat and other meat-related products.
The primary target firm is GFMP. GFMP is ultimately controlled by ECP Africa Fund. GFMP operates a halaal-certified meat plant in Cape Town that manufactures and distributes frozen beef burger patties only. The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
The Commission further found that the proposed transaction does not raise substantial public interest concerns.
Sources: Compcom.co.za
