The SA Paint Manufacturing Association (SAPMA) objected to the department of trade and industry saying the coatings industry was “prone to collusive behaviour”, executive director Deryck Spence said on Wednesday.
Spence, in a letter to Lionel October, acting director general of the dti, said SAPMA wished to place on record its “objection to the statement in the strongest form”.
October said in a statement on March 30 the local paint market was “highly concentrated and prone to collusive behaviour” while voicing the dti's concern about the possible takeover of paint company Freeworld Coatings by Japanese multi-national, Kansai Paint Company.
The dti had asked the Competition Commission to prohibit the proposed takeover.
October was concerned that the hostile takeover was likely to weaken competition in a market which is already highly concentrated and prone to collusive behaviour in other jurisdictions.
“SAPMA's co-operation with government departments - including the Competition Commission - is ongoing in our association's pursuit to ensure that we remain transparent in all issues pertaining to membership,” Spence said in a statement.
“Detailed records of discussions and correspondence are available to confirm that all initiatives are sanctioned by the Competition Commission, including copies of minutes of SAPMA executive committee meetings.”
He said SAPMA took the responsibility for “representing the coatings industry extremely seriously and with the utmost integrity”.
He invited the dti to SAPMA's annual meeting on April 14 in Johannesburg “to confirm that the definition in your press release of being 'prone to collusive behaviour' does not apply to the SA Paint Manufacturing Association”. - Sapa