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Adcock Ingram pays R2m fine for flouting merger rules

Jun 15 2017 11:50
Matthew le Cordeur


Company Data

ADCOCK INGRAM HOLDINGS LIMITED [JSE:AIP]

Last traded 58
Change 0
% Change 0
Cumulative volume 386351
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Cape Town - Adcock Ingram [JSE:AIP] has reached a settlement with the Competition Commission and will pay a R2m fine for contravening the Competition Act with the pre-implementation of a merger with Bidvest Group’s BB Investment.

Adcock Ingram said it has not admitted guilt, but settled to “avoid protracted and expensive litigation”, it said in a statement on Thursday.

“As part of the settlement, the respondents have agreed to pay a settlement amount of R2m and to develop, implement and monitor a competition law compliance programme for senior management and directors,” it said.

Adcock Ingram was trading 0.5% lower at R58.21 by 11:40 on Thursday on the Johannesburg Stock Exchange.

The Competition Tribunal said on Wednesday that it was considering the settlement agreement.  

“In April 2014, the commission was notified by BB Investment and Bidvest of its intention to acquire a controlling interest in Adcock,” it said in a statement on Wednesday. “When the commission investigated the merger it found evidence that suggested Bidvest may have acquired control of Adcock prior to obtaining approval from the Tribunal.

“The merger was approved on 19 August 2014, and it was noted in its reasons by the Tribunal that Bidvest may have acquired control over Adcock prior to obtaining approval from the Tribunal.

“The commission referred this complaint to the Tribunal on 9 December 2015,” it said. “The commission has recommended that BB Investments and Bidvest pay a settlement amount of R2m.”

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