R2m settlement agreement by Bidvest and Adcock Ingram approved by the Tribunal
15 JUNE 2017
BIDVEST TO PAY R2M FOR GAINING CONTROL OF ADCOCK INGRAM HOLDINGS BEFORE MERGER APPROVAL
The settlement agreement involving BB Investment (BB Investment Company Ltd, a wholly owned subsidiary of the Bidvest Group Ltd) and Bidvest Group Limited for acquiring control of Adcock Ingram Holdings Limited (Adcock) before the merger’s approval has been approved by the Competition Tribunal after a hearing on Wednesday, 14 June. Bidvest is to pay a R2 million settlement agreement.
In April 2014, the Competition Commission was notified by BB Investment and Bidvest of its intention to acquire a controlling interest in Adcock. When the Commission investigated the merger it found evidence that suggested Bidvest may have acquired control of Adcock prior to obtaining approval from the Tribunal.
The merger was improved on 19 August 2014, and it was noted in its reasons by the Tribunal that Bidvest may have acquired control over Adcock prior to obtaining approval from the Tribunal.
The Commission referred this complaint to the Tribunal on 09 December 2015, but the respondents then entered into settlement discussions with the Commission.
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