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Johannesburg - Poultry producer Country Bird announced on Monday that it had accepted a settlement offer by Astral Foods for the purchase of its 18% shareholding in Elite Breeding Farms.
The total settlement amount is R25m.
"The sale releases Country Bird from what it contended to be an anti-competitive agreement that required the company to purchase breeding stock from a competitor," the group said.
Country Bird and Astral had been involved in litigation over the Elite arrangement for several years.
A complaint had also been lodged with the Competition Commission, which was subsequently referred by the Commission to the Competition Tribunal.
In terms of the settlement, both parties have withdrawn any claims each might have had against the other, with each party bearing its own costs.
"Country Bird has been vindicated in its decision to stop purchasing the Ross bird, as was required by the Elite arrangement, and to replace its entire breeding stock with the Arbor Acres bird.
"This replacement programme has recently been successfully completed, having commenced some 18 months ago.
"Country Bird has withdrawn its application to intervene in the Competition Commission's referral of complaint against Astral.
"However, it is likely that the Commission will continue with a complaint in relation to Astral's past conduct," Astral said.
At 14:08, shares in Country Bird were down 20 cents, or 8.89%, at R2.05 and shares in Astral were down R2.99, or 3.29%, at R88.
- I-Net Bridge
