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Pretoria - Tiger Brands once again finds itself being targeted by the competition authorities - this time because of possible collusion to share markets in the fishing industry.
Shared directorships by this company and investment group Brimstone, two potential competitors, has raised a red flag about possible collusion.
Nandi Mokoena from the Competition Commission has confirmed that the allegation now forms part of its investigation into the market for tinned deep-sea fish, like salmon.
During its investigation into Brimstone's takeover of Sea Harvest the commission established the possibility of the two splitting the fish market.
It emerged that Brimstone also had a stake in Oceana, thanks to a verbal agreement with Tiger Brands.
Although the stake amounts to less than 12%, the commission found that Brimstone had joint control of Oceana, owing to the verbal agreement.
Sea Harvest would appear to be mainly involved in processing and supplying stock fish, while Oceana is primarily concerned with canned deep-sea fish.
During Brimstone's takeover hearing before the competition tribunal the parties undertook to abandon the verbal agreement.
Tribunal chairperson David Lewis however expressed serious misgivings about the fact that the directors of Brimstone (Sea Harvest) were still serving on the board of Oceana (Tiger Brands). "It smells of market-sharing; whether this in fact is happening is clearly for the commission's further investigation to determine."
Lewis said that it was insane for Brimstone to keep directors on Oceania's board.
Mike van der Nest, a legal representative involved in the mergers, said in response to the warning by Lewis that the transaction did not contribute to collusion or possible collusion.
He added that Tiger had previously been involved in both companies (Sea Harvest and Oceania), but that it had sold its interest in Sea Harvest.
Now only Brimstone has a presence in both companies. There is therefore less risk of collusion than formerly.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.