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Johannesburg - A government department has applied to intervene in antitrust hearings of Japan-based Kansai Paint’s $260m takeover of local paint firm Freeworld Coatings [JSE:FWD] on “public interest” grounds, Kansai’s legal advisor said on Tuesday.
“I can confirm that the Department of Trade and Industry has applied to intervene in the hearings,” Gomolemo Kekesi, a lawyer at Bowman Gilfilan, which represents Kansai, said.
In approving the bid in April, the Competition Commission stipulated that Kansai had to sell Freeworld’s automotive coatings business, build a factory and not cut jobs for three years.
But Kansai appealed one of the conditions that required it to sell part of Freeworld and asked the Competition Tribunal to suspend that condition until the appeal is heard.
The Competition Tribunal, a higher tier in the country’s competition authorities, suspended the condition of the sale last Friday, pending the hearings on November 14-25.
The government has said if the Freeworld coatings unit was sold to Kansai, the nation would lose a unique technology that added value to local components in auto manufacturing.
Competition Tribunal officials were not immediately available to comment.
The government is also appealing competition authorities’ decision to allow giant retailer Walmart’s R16.5bn purchase of local discount retailer Massmart Holdings [JSE:MSM] and wants weightier conditions imposed on the US chain store.
“I can confirm that the Department of Trade and Industry has applied to intervene in the hearings,” Gomolemo Kekesi, a lawyer at Bowman Gilfilan, which represents Kansai, said.
In approving the bid in April, the Competition Commission stipulated that Kansai had to sell Freeworld’s automotive coatings business, build a factory and not cut jobs for three years.
But Kansai appealed one of the conditions that required it to sell part of Freeworld and asked the Competition Tribunal to suspend that condition until the appeal is heard.
The Competition Tribunal, a higher tier in the country’s competition authorities, suspended the condition of the sale last Friday, pending the hearings on November 14-25.
The government has said if the Freeworld coatings unit was sold to Kansai, the nation would lose a unique technology that added value to local components in auto manufacturing.
Competition Tribunal officials were not immediately available to comment.
The government is also appealing competition authorities’ decision to allow giant retailer Walmart’s R16.5bn purchase of local discount retailer Massmart Holdings [JSE:MSM] and wants weightier conditions imposed on the US chain store.
