Feathers fly as Competition Commission rejects merger for SA's biggest ostrich firms | Fin24
 
  • Load Shedding

    Find the latest load shedding schedules for Joburg, Durban, Cape Town, and other cities.

  • Medupi

    How a series of failures and design flaws combined to bring the power plant to its knees.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Feathers fly as Competition Commission rejects merger for SA's biggest ostrich firms

Jul 01 2019 22:00
Fin24

Two of the largest companies in the ostrich industry are heading to the Competition Tribunal in a bid to have a decision by the Competition Commission – to prohibit their merger – overturned.

The Commission earlier prohibited the merger between Mosstrich and Klein Karoo International, the Competition Tribunal said in a statement on Monday. According to the Tribunal, the Commission found that the merger would result in a "near monopoly" in the market for ostrich meat and feathers.

The Commission also found that the merger was "aimed at eliminating competition between the two companies" and that they would "control the entire value chain of the ostrich industry" if the merger were approved.

The companies, however, argue that the proposed transaction is an attempt to stabilise the ostrich industry, which is in a state of decline, adding that there is no incentive for them to exploit the local market.

They also argue that the proposed merger will aid the survival of the industry and create jobs.

The Tribunal will hear evidence from various witnesses this week including the two companies, competitors and farmers, retailers and economic experts. Final arguments will be heard on Monday, July 8.  

NEXT ON FIN24X

 
 
 
 

Company Snapshot

#MINIBUDGET2019

Struggling power utility Eskom will take centre stage at this year's mini budget
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...