Competition Tribunal orders Daun to limit job cuts
The South African Competition Tribunal has ruled that Claas Daun’s acquisition of Kolosus Holdings will not affect competition in the local skins and hides market or affect car manufacturers.
The tribunal has however ordered the German company, Daun et Cie AG, to limit job losses to 150 in its first trading year. The ruling was made despite the fact the firm claims it needs to shed 107 staff, in addition to the 150 forecast in its merger papers. The firm cites the deteriorating economic environment.
The tribunal conditionally approved the transaction between Kolosus and Daun in July 2003, however only released its conditions last week.
The tribunal described Mr Daun as: “A risk taker who has developed a reputation as a successful ‘turnaround’ specialist - an entrepreneur adept to identifying opportunities for rescuing ailing businesses.”
