Competition Tribunal approves merger involving BKB and VKB Landbou
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DURBAN - THE Competition Tribunal has approved a merger whereby Trade Retail HoldCo and AgriFin HoldCo will acquire control over the trade retail, fuel and financial services businesses of BKB and VKB Landbou, which are active in the agricultural sector.
BKB sells agricultural products, while VKB Landbou is an agricultural enterprise.
As a condition to the merger, the parties had to undertake a transformation initiative whereby a certain percentage of shares would be held by historically disadvantaged individuals (HDI). This would involve a commitment by BKB to restructure BKB Fuel Retail SubCo so that no less than 25 percent of its shares were held, directly or indirectly, by one or more HDI shareholders.
BKB was also required to implement the transformation initiative within 24 months of the implementation date of the merger.
The tribunal said it had also imposed information-sharing conditions to prevent post-transaction information sharing, including that BKB and VKB could appoint or nominate individuals to the board of directors of the acquiring firms, they should ensure that the names of nominees who were also employed by or serve on, or were nominated and/or appointed on any board or management committees of the holding companies and/or affiliate companies of BKB and VKB.
No competitively sensitive information in relation to the grain and oilseed storage and trading activities should be discussed, disclosed nor shared in any form or means by the boards of directors of the acquiring firms, it said.
Other businesses of BKB of livestock, fibre (wool and mohair) and the PakHouse Brands would not be part of the now approved transaction.