Tribunal decides ostrich leather merger can go ahead
16/08/2019
Klein Karoo International (KKI) and Mosstrich announced their intention to merge in July 2018. However, the South African Competition Commission raised objections. It ruled that the proposed merger could result in “a substantial lessening of competition” in the domestic market for ostrich meat.
The commission was less concerned about leather because most of the ostrich leather the companies produce goes for export. Feathers are a further by-product of their operations.
Both companies appealed against this ruling, which meant the case went to tribunal. The tribunal published its decision on August 15.
Most of the conditions imposed by the tribunal relate to guaranteeing supply of certain volumes of meat and feathers to the domestic market.
Please see separate article on the implications for leather.
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