The Tribunal has approved the large merger whereby Sun Valley Estates (Pty) Ltd (“Sun Valley”) intends to acquire Ascendis Vet (Pty) Ltd (“Ascendis Vet”), Ascendis Animal Health (Pty) Ltd (“Ascendis Animal”), Kyron Laboratories (Pty) Ltd (“Kyron Laboratories”) and Kyron Prescriptions (Pty) Ltd (“Kyron Prescriptions”). The merger is approved subject to a Transformation Initiative condition.
 
Public interest
 
Regarding the impact that the merger will have on the spread of ownership, the acquiring group has committed to enter into a Broad-Based Black Economic Empowerment (“B-BBEE”) transaction with a B-BBEE investment partner post-merger. The B-BBEE transaction will result in the investment partner having a specified percentage of (indirect) shareholding in Sun Valley and the target firms will be black-owned, as to a specified minimum percentage.
 
The acquiring group must provide the Competition Commission (“the Commission”) with specific details, in writing, of the Transformation Initiative before it is implemented. In addition, it may not be implemented without the Commission’s written approval.
 
Competition assessment
 
The Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition in any relevant market in South Africa.
 
Merger parties
 
The acquiring group is an agriculture and food group which focuses on agricultural inputs and services, fresh fruit, food processing and health foods.
 
The target firms comprise the constituent businesses that form part of Ascendis’ Animal Health division. Their activities include development, importation, manufacturing, warehousing, distribution and marketing of medication across the production (cattle, pigs, sheep, etc.) and companion (cats, dogs, horses, etc.) animal health markets.