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. 

Johannesburg, Gauteng, SA – Chemical company Lanxess, one of the major suppliers globally of chrome used in tanning, told S&V last week that the strike at its Rustenburg chrome mine had ended on June 27 and that production is expected to resume this week.
       It said it "did not expect that the strike would result in a shortage of supply, in South Africa or internationally."

Cape Town, W Cape, SA – In a release via the Stock Exchange News Service (SENS) on July 2, Truworths said:
Truworths noted a media report by Sky News, a British news organisation, on Monday, 1 July 2019 wherein it was stated that, inter alia, the Group's United Kingdom ("UK") subsidiary, Office Holdings Ltd. ("Office"), has appointed advisors to consider restructuring options. The Group would like to respond to this media report as follows:

       Office has circa GBP45 million of debt which is due to be repaid with a significant portion of the debt to be settled through a lump sum payment at maturity in December 2020. In light of the depressed retail trading environment currently being experienced in the UK, Office has entered into discussions with the relevant lenders regarding potential debt restructuring options. To assist in this regard, Office and the lenders have appointed Alvarez & Marsal Europe LLP and Deloitte LLP, respectively, as their professional advisors.
       Though it is expected that the UK and Office will continue to experience a difficult trading environment in the medium term, the company's management and the board of directors believe that the discussions with the lenders and any resultant debt restructuring will not have a material impact on the Group's operations in South Africa and the rest of Africa.

"It's month end, so it's been a bit busier. More-or-less on par with last month, I'd say." - Zane Mitha, manager, Diski Sport Retailers, Tembisa, Gauteng, SA. Independent, 1 store, sports goods specialist.

"Nothing great. Much the same as last month. It looks like it will be a terrible year." - Ebrahim Docrat, member, Docrat's Vogue Look, Lenasia, Gauteng, SA. Independent, 3 stores, women's boutique.

"I can't complain. It's definitely better than last month. It's a tough year, but it's picked up quite nicely. I guess it's because there are a lot of weddings and matric dances at this time of year, and the July is coming up." - Zaheer Maiter, member, Dominion Outfitters, Durban, KZN, SA. Independent, 1 store, men's outfitter.

"The centre is very quiet, but we have additional ways of bringing people into the store. It's end of month, average." - Donieta Herr, member, Don Marco, Port Elizabeth, E Cape, SA. Independent, 3 stores and online, women's boutique.

"I've been in business for 30 years, and the last 2 have been the worst. There's no direction in our buy, no brands are doing particularly well, and people don't want to spend. Today the weather is beautiful, and people would rather do something outdoors than come here to buy boots. In general, we all need to do things differently." - Farouk Mahomed, member, Don Milano, Benoni, Gauteng, SA. Independent, 1 store, men's outfitter.

Rumours that exotic leather goods manufacturer Corbeau cc has become the latest Cape Town factory to close are incorrect, member Llewellyn Whitfield wrote on Friday.
       "Corbeau is busy repositioning the company within the Ostrich and Croc leather goods supply industry. At this stage I can confirm that the format of the company is definitely undergoing structural changes but certainly not disappearing. Until the repositioning is complete I will not be able to give more detail of the new business format. Corbeau is always contactable on 083 628 0300."