Tribunal decision on school uniforms matter

The Tribunal has today, Wednesday 27 February 2019, issued its decision relating to consent orders (agreements) entered into between the Commission and several firms involved in the manufacture of school uniforms. The Tribunal has issued orders, confirming the respective agreements.
 
Yesterday, the Commission and St Andrew’s School for Girls, AdvTech Ltd, Curro Holdings Ltd and Inspired Schools (trading as Reddam House and Redford House) asked the Tribunal to confirm the consent orders. They ultimately aim to reduce the prices of school uniforms.
 
The agreements come after the Commission initiated complaints against several schools, school uniform manufacturers and school uniform suppliers alleging that exclusive supply agreements allowed manufacturers and suppliers to extract higher prices than they would in a competitive environment.
 
In terms of the agreements the respondents commit, among others, to contract school uniform suppliers through a transparent and competitive bidding process – and to enter into these contracts for limited periods. The respondents also agree to adhere to a code of conduct containing best practices.
 
Although the Commission alleged that the respondents had contravened the Competition Act by concluding exclusive agreements, the respondents do not admit to contravening the Act. The Commission did not seek to impose any administrative penalties.  

The Tribunal has approved, without conditions, the proposed merger whereby ETG Inputs Holdco Limited (ETG Inputs) acquires Sidi Parani.
 
ETG Inputs, a UAE company, is a wholly owned subsidiary of ETC Group. It is involved in agricultural trading and processing in 27 countries. In SA it is involved in commodity trading and logistics. Relevant to the transaction is its subsidiary, Kynoch’s activities as an importer, manufacturer, blender and distributor of fertiliser commodities in SA and SADC.
 
Kynoch manufactures liquid fertiliser and blends and bags dry fertiliser. Its liquid fertiliser is produced in Endicotte and Kimberly. It also sells satellite blenders with its NPK blended fertiliser operation located in Durban, Richards Bay, Endicotte and Viljoenskrron
 
Sidi Parani supplies a range of nutrition products including liquid fertiliser, dry fertiliser and microelement nutrients. It operates in the Northern Cape, North West, Free State and Namibia.

 

The Tribunal has approved, without conditions, the proposed merger whereby Farmisco (Pty) Ltd, trading as Kynoch Fertilizer (Kynoch), seeks to acquire Profert Holdings (Pty) Ltd.  
 
Kynoch is a wholly owned subsidiary of ETG Input Holdco Limited (Dubai) and is ultimately controlled by Export Marketing BVI Limited (the ETG Group). The ETG Group is engaged in importing, manufacturing, blending and distributing fertilizer commodities in SA. It supplies blended liquid and granular NPK fertilizers and fertilizer straights in all provinces except the Western Cape.
 
Profert Holdings comprises certain assets and operations of a group of companies and subsidiaries which are referred to as the “Profert Cluster” within Profert Holdings. Profert Holdings is currently in business rescue.  Profert blends and supplies liquid and granular NPK fertilizer and supplies farmers with fertilizer straights. Profert fertilizer and fertilizer straights are sold in all SA provinces excluding the Western Cape.