CAPE HARVEST FOOD GROUP AND BM FOOD GROUP MERGER APPROVED
The Tribunal has unconditionally approved the large merger between Cape Harvest Food Group (Pty) Ltd (“Cape Harvest”) and BM Food Group (Pty) Ltd (“BM Food”).
Post-merger, Cape Harvest will have sole control over the business of BM Food. Simultaneous to the proposed transaction, an internal restructuring will occur in order to convert BM Food into a holding company for the BM Food Group.
The Tribunal has concluded that the transaction will not substantially prevent or lessen competition in any relevant market in South Africa as, post-merger, the merged entity will continue to compete with a number of firms.
Further, the merger does not raise any public interest concerns as there will be no retrenchments as a result of the proposed transaction. In addition, the Tribunal has noted that the merger will have a positive effect on the level of Broad-Based Black Economic Empowerment (“B-BBEE”) or worker ownership, as B-BBEE shareholding will be introduced into BM Food.
Cape Harvest is a wholly owned subsidiary of Sea Harvest Group Limited (“Sea Harvest”), which is directly controlled by Brimstone Investment Corporation Limited (“Brimstone”). Cape Harvest and its controllers are producers and suppliers of dairy products, and frozen and non-frozen seafood in South Africa.
BM Food is a newly incorporated company. The BM Food Group is an importer and manufacturer of specialized foods in South Africa. It supplies cheese to retail and non-retail channels and supplies non-frozen seafood to non-retail channels.
Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
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