TRIBUNAL APPROVES LARGE MERGER IN FORESTRY SECTOR, WITH CONDITIONS

The Tribunal has conditionally approved the merger whereby Shiselweni Forestry Company Ltd (“Shiselweni”) will acquire the businesses being conducted by both Peak Timber Ltd (“Peak Timber”) and Peak Forest Products (Pty) Ltd (“PFP”) as going concerns. Post-merger, Shiselweni will wholly own the target firms.

 

Merger conditions

 

Following a hearing during which the Commission and merger parties made submissions, the Tribunal has approved the transaction subject to various conditions to secure supply for existing customers of the target firms. The conditions relate to the following markets:

• mining timber (not sawn and untreated);
• mining timber (final product);
• untreated transmission poles;
• untreated building and fencing poles;
• treated building and fencing poles;
• pulp logs; and
• saw logs.

 

A public copy of the Tribunal’s order (and the conditions) will be published on the Tribunal’s website in due course at www.comptrib.co.za.

 

The merger parties

 

Shiselweni is a forestry company located in eSwatini. Its plantations include wattle, eucalyptus and pine. It is wholly owned by TWK Investments Ltd, a company incorporated in South Africa. TWK Investments is, in turn, controlled by TWK Agriculture Holdings (Pty) Ltd. TWK focuses on supplying agricultural and related services. Of relevance to this transaction, are TWK’s activities relating to the supply of treated and untreated transmission poles, building and fencing poles, mining timber logs, pulp logs and woodchips.

 

Peak Timber is a firm incorporated in South Africa while PFP is incorporated in eSwatini. Peak Timber is involved in planting, harvesting, processing and selling timber and timber related products. PFP is involved in sawmilling operations. Both firms have their principal place of business in eSwatini. Neither have assets in South Africa. From their plantations they supply untreated transmission poles, untreated building and fencing poles, untreated mining timber logs (not sawn), pulp logs and woodchips to customers in South Africa.

 

 

Issued by:

Gillian de Gouveia, Communications Officer

On behalf of the Competition Tribunal of South Africa

Cell: +27 (0) 82 410 1195

E-Mail: GillianD@comptrib.co.za

Twitter: @comptrib

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