Competition Tribunal approves mergers: Unilever, Tessara and Akzo Nobel

7 Jul 2018

PBM

South Africa’s Competition Tribunal has approved without conditions three proposed mergers/acquisitions which include the Unilever transaction, First Carlyle Growth vs Tessara and Akzo Nobel vs Carlyle Group. Here follows the tribunal announcement on the transactions.

The Unilever transaction 

The Tribunal has approved merger between Unilever Holdings, a newly incorporated company in the Netherlands for the purpose of the proposed transaction. In South Africa, Unilever N.V and Unilever PLC  indirectly control Unilever South Africa Holdings. Unilever South Africa Holdings in turns controls Unilever South Africa.

The target firms are separate legal entities but operate as a single economic entity and are engaged in the manufacture and supply of a range of products such as food, beverage, cleaning against and personal care products.

The proposed transaction will not amount to any job losses. National Union of Food Beverage Wine Spirits and Allied Workers (NUFBWSAW), the representatives of merging parties’ employees, had raised labour concerns that these were not considered by the Commission to be merger specific and they chose not attend the merger hearing.

The merger has been approved without conditions.

Tessara/First Carlyle Growth V merger is approved

Mainstreet 1603, wholly-owned and controlled by First Carlyle Growth V a global alternative asset manager is looking to merge with Tessara, manufacturer and supplier of packaging material for grapes.

Tessara supplies and manufactures packaging material for grapes particularly laminated SO2 generator sheeting to protect table grapes from post-harvest decay and fungal infections during transportation.

Tessara also supplies Florasys, a SO2 sheeting designed to protect roses from post-harvest decay, and is currently developing products designed to protect tomatoes and blue berries among others.

The merger has been approved without conditions.

Akzo Nobel sells its chemicals business to Carlyle Group

International merger involving Starfruit Finco and speciality chemical business of Akzo Nobel has been approved by the Tribunal.

Akzo Nobel SC business is operated through five business units: Industrial chemicals, Surface chemistry, pulp and performance chemicals, polymer chemistry, and Ethelyne and sulphur derivatives.

Starfruit is a special purpose vehicle ultimately controlled by American multinational private equity, alternative asset management and financial services corporation Carlyle Group. Akzo Nobel SC is the speciality chemicals business of Akzo Nobel, a global manufacturer as supplier of paints, coatings and speciality chemicals.

The transaction has been approved without conditions.

Akzo Nobel SC has, prior to this transaction, been internally separated from Akzo Noble and has no manufacturing facilities in South Africa. In order to sell to customers within the country it depends on imports from abroad.

info@probonomatters.co.za

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