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The order, issued on April 16 2002, approved the merger between Astral Foods Limited and National Chick Limited subject to certain conditions, which included a condition that Astral supply independent customers, in the broiler industry, in terms of a standard form contract to be approved by the Competition Commission.
Astral is in dispute with Mike's Chicken and Daybreak over whether this aspect of the Competition Tribunal's order voided an existing long-term contract between them. Astral contends it does not.
Astral applied to the Tribunal to vary its order in order to clarify the status of its pre-merger supply contracts with independent customers in the broiler industry and to indicate which terms in those existing contracts should remain applicable post-merger.
Daybreak Farms, Mike's Chicken and Midway Chix applied to intervene in the variation application as they maintain their rights will be affected if the Tribunal were to vary its order.
Astral opposed the intervention on the grounds that there was no legal basis for parties to intervene in variation proceedings and that even if there were, the interveners had not made out grounds for intervention, as they were not parties to the merger proceedings and hence could have no interest in the outcome of a proceeding to vary such an order.
The Tribunal found Thursday that the applicants are entitled to intervene in the variation proceedings. The Tribunal said the fact that the applicants were not parties to the merger is not decisive, the issues is whether the parties are affected or have an interest. The Tribunal found that they are affected and do have an interest. - I-Net Bridge
