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D-Day for ostrich industry

Published: 8th Jul 2019

Pretoria, Gauteng, SA – The Competition Tribunal will hear final arguments today in the application by Mosstrich and Klein Karoo International to merge after the Competition Commission earlier this year rejected their application.
       In a release last Monday, the tribunal said:
Two of the largest companies in the ostrich industry are approaching the Tribunal this week in a bid to have a decision by the Commission – to prohibit their merger – reconsidered.
       The Commission earlier prohibited the merger between Mosstrich (Pty) Ltd and Klein Karoo International (Pty) Ltd, after finding that the merger would result in a near monopoly in the market for ostrich meat and feathers. The Commission also found, among others, that the merger was aimed at eliminating competition between the two companies and that they would control the entire value chain of the ostrich industry if the merger was approved.
       However, the companies argue that the proposed transaction is an attempt to stabilize the ostrich industry which is in a state of decline. They submit that there is no incentive for them to exploit the local market. They maintain that the case, on the whole, does not make out a case for prohibition. They also submit, among others, that the proposed merger will aid the survival of the ostrich industry and create jobs.
       The Tribunal is hearing evidence from various witnesses this week including the two companies, competitors/farmers, retailers and economic experts. The matter has been scheduled for hearing this week and final arguments will be heard next Monday, 8 July 2019. 

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