|
Tribunal approves merger whereby global engineering group acquires mining and tunnelling products provider,
subject to employment conditions
The Tribunal has approved, with employment conditions, the large merger whereby Sandvik Aktiebolag plc (“Sandvik”) will acquire DSI Underground Holdings S.à.r.l. (“DSI”). Post-merger, Sandvik will acquire sole control of both DSI and a South African joint venture between DSI and Frank Calandra Inc (“Jennmar JV”).
Merger conditions
The Tribunal has concluded that the transaction is unlikely to substantially prevent or lessen competition in any relevant market in South Africa. However, the merger has been approved subject to the following conditions relating to employment:
- The merger parties may not retrench any employees in South Africa as a result of the merger, for a period of two years after the merger has been implemented (“the moratorium period”); and
- Should the need to retrench employees arise after the moratorium period, the merger parties shall for a further period of 24 (twenty-four) months give preference to any affected employees in relation to any available vacancies that may arise within any wholly owned subsidiaries and/or divisions that are operationally under the control of the merger parties provided they have the requisite qualifications, skills, know-how and experience.
Merger parties
Sandvik, a global engineering group, is a publicly listed Swedish company that controls several firms in South Africa. In South Africa, it is predominantly active in providing mining and rock solutions as well as manufacturing and machining solutions.
DSI, a mining and tunnelling products provider, is a company incorporated in Luxembourg. In South Africa, DSI, through its subsidiaries, manufactures and supplies specialised ground control products to the South African underground mining and geotechnical industries.
|
