The Competition Tribunal has given unconditional approval for a merger in terms of which SoftBev will be 100% acquired by The Beverage Company through its subsidiary, Little Green Beverages, from JSE-listed Bowler Metcalf and other shareholders.
Little Green Beverages is involved in producing, packaging and distributing branded and private label non-alcoholic beverages (NABs) in Southern Africa. BevCo produces its own brand as well as house brands for various retailers. It also bottles, packages shrink wraps and palletises the beverage products it manufactures. BevCo has a strong presence with its Refreshhh brand.
SoftBev manufactures, sells and distributes NABs which includes carbonated ‘soft’ drinks and energy drinks, throughout South Africa. It has its own brands such as Jive, Coo-ee and energy drink brands Reboost and Punch. It also produces, markets and distributes carbonated soft drinks for third party brand owners such as PepsiCo and Seven-up, and private retail brands.
The Competition Commission found that the merging parties’ activities overlap broadly with regards to the manufacture, distribution and sale of NABs, which includes carbonated soft drinks and energy drinks but that there was sufficient competition for there to be no lessening of competition in the market.