The Competition Commission of South Africa has prohibited a proposed transaction whereby Africa Forestry (AFF) intended to acquire Vuka Forestry Holdings and Glen Village Trading.
AFF forms part of entities including MTO Forestry, Ramanas Farms, Imvelo Forests, and Peak Timbers Limited, among others, collectively referred to as the ASF Group.
The ASF Group is active in the plantation of hardwood trees which they harvest and sell as transmission pole logs, building and fencing pole logs, mining timber logs, and pulp wood, among others. Vuka is involved in a treatment of poles operating from a facility in Commondale, Mpumalanga. Vuka primarily produces treated transmission poles and treated building and fencing poles.
The proposed transaction would have resulted in an overlap in the business activities of the parties in relation to the supply of treated building and fencing poles. This overlap, however, does not raise competition concerns in the market for the supply of treated building and fencing poles as the parties combined post-merger market shares remain relatively low.
However, the Commission found that the proposed the transaction raised several competition concerns from a supplier-customer (vertical) relationship perspective with respect to transmission pole logs. ASF Group supplies transmission pole logs to Vuka and its rivals which they use them as inputs to produce treated transmission poles
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
CVS Health Explores Potential Breakup Amid Investor Pressure: Report
Oct 3, 2024 by
CPI
DirecTV Acquires Dish TV, Creating 20 Million-Subscriber Powerhouse
Oct 3, 2024 by
CPI
South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices
Oct 3, 2024 by
CPI
Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs
Oct 3, 2024 by
CPI
Attorney Challenges NCAA’s $2.78 Billion Settlement in Landmark Antitrust Cases
Oct 3, 2024 by
nhoch@pymnts.com
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh