The Commission has recommended that the Competition Tribunal (Tribunal) approve the proposed transaction whereby ETG intends to acquire Cure-Chem, subject to conditions.
The acquiring firms are active in the supply of agricultural products, commodity trading, and the market for the blending and distribution of granular fertilizer and liquid fertilizer in South Africa.
Cure-Chem is an importer and distributor of raw chemicals that are supplied as inputs for the manufacture of detergents in South Africa.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant market.
However, the Commission found that the merger raises concerns regarding section 12A(3)(e) of the Act. However, the parties have agreed to increase its expenditure on skills, supplier and enterprise development initiatives in South Africa, which address the public interest concerns arising from the merger.
Source: Compcom.co.za
