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Date of release: 1 April 2021
Tribunal approves two transactions whereby Afrique Pet Food acquires
dry pet food businesses
The Tribunal has approved two mergers whereby Afrique Pet Food (Pty) Ltd (“Afrique”) will acquire dry pet food businesses.
In the first part of the divisible, but linked, transactions the Tribunal has unconditionally approved the large merger between Afrique and the Dry Pet Food Business of Philafrica Foods (Pty) Ltd (“Philafrica target business”). The transaction involves Afrique acquiring control of the Philafrica target business.
Afrique is a newly incorporated company which does not control any firms. The Philafrica target business currently manufactures and sells dry dog food under its brand JOCK and co-manufactures dry pet food for other brand owners.
In the second part of the transactions, Afrique will acquire part of the Dry Pet Food Business of Martin and Martin (Pty) Ltd (“M&M target business”).
The M&M target business currently manufactures and supplies both dry and wet dog and cat food under the Epol and Vitagen dry pet food brands and has co-manufacturing agreements for dry pet food with various third parties.
The Tribunal has concluded that this transaction does not substantially prevent or lessen competition in any relevant market in South Africa. However, due to employment concerns, the Tribunal has imposed public interest-related conditions:
  • There may not be any merger-related retrenchments (other than the affected employees) for a specified period;
  • Afrique must provide all of the qualifying affected employees with an opportunity to receive focused core skills training upon termination of their employment. Afrique will pay accredited institutions R20 000 per employee to attend a training course of their choice. The merger parties will also cover their transport costs to attend the training; and
  • The affected employees will receive preference when vacancies arise in the merged entity, for a 36-month period.
The conditions also require the merged entity to reduce the period of the restraint of trade, in terms of which M&M is restrained from conducting any competing dry pet food business against the merged entity in South Africa, to three years before the merger implementation date.
Issued by:

Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
Twitter: @comptrib
Our mailing address is:

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