The Competition Commission has given the green light for Marga to acquire popular skincare company, Dermalogica SA, with conditions.
The primary acquiring firm is Marga, with the company incorporated under the laws of the Kingdom of the Netherlands. Marga is controlled by Unilever, which is listed on the London Stock Exchange and is not controlled by any single shareholder.
Marga and all the firms that directly and indirectly control it, as well as those that they control are referred to as the Acquiring Group.
In South Africa, Unilever controls Unilever South Africa Holdings, which in turn controls Unilever South Africa.
The Unilever Group is active worldwide in the manufacture and supply of a range of products including food, personal care products, beverage and cleaning agents.
It also manufactures skincare brands including Dove, Dawn, Even and Lovely, Lux, Ponds and Vaseline.
In South Africa, Marga supplies Dermalogica skincare products through Dermalogica SA, the primary target firm, wholly owned and controlled by The Dermal Institute of South Africa (DISA).
DISA is wholly owned and controlled by CAVI Brands (CAVI) which in turn is wholly owned and controlled by Candur Active Value Investments (Candur).
Dermalogica SA is the sole distributor of skincare products licensed by the acquiring group in South Africa.
The products are sold in South Africa under the Dermalogica brand. The products and services distributed by Dermalogica comprise three interconnected lines: professional, retail and online.
DISA also offers skincare education and services to skin therapists, consumers, and beauty consultants, via master-classes offered through contact and online learning.
The commission said in a statement, “The merging parties have agreed to a set of conditions that will address public interest concerns, including that the Target Firm shall provide education and training programs to tertiary students and qualified skincare therapists for a period of two years following the implementation date. The Target Firm shall also spend a set amount annually on marketing and design services procured from SMMEs and HDP-owned or controlled businesses.”
“Finally, the merging parties will set up an entrepreneurial support program aimed at supporting salons in the Target Firm’s value chain. All of these conditions will give preference to businesses owned and controlled by Historically Disadvantaged People (HDPs) who are women and youth,” the Commission further stated.
The Commission said that the proposed transaction was unlikely to result in substantial prevention or lessening of competition in any relevant markets.
BUSINESS REPORT