SOUTH AFRICA: Distell merger under investigation
The Tribunal presented its findings in Pretoria late yesterday and in its summary it found that although there were three major shareholders, there was no conclusive evidence that they operated together in directly controlling the direction of SFW and Distillers.
The report stated: "On the facts before us we find there is no evidence to suggest the respondents (Distillers and SFW) form part of a single economic entity. Nor is there evidence that the shareholders direct the activities of either of the respondents let alone directing that they act in concert. On the contrary there is at least prima facie evidence that the two companies operated autonomously and were held out as competitors to their shareholders."
The newly merged Distell group will now have to go back to the Competition Commission within 10 working days to make a submission about the merger between its former entities.
Distell Corporate Affairs Director, Andre Steyn, said today that the group's legal team would study the findings in full before a decision was made on the best course of action
To add to the confusion of this whole debacle, the competition authorities have also made known that they will be looking at the entire South African alcoholic beverage industry to see where monopolistic practices were evident. And this could take more than a year to complete.
South African wine and spirits group Distell has posted a rise in half-year sales and volumes....
South African wine and spirit group Distell has been ordered to honour a contract it cancelled with a local grape farmer, according to reports....
Distell's broad-based black economic empowerment deal will cost about R870m (US$137m), but the new partners will be locked into an eight to 10 year agreement before any dividends are realised....
Distell today announced its broad-based transformation plans between a black economic empowerment group, certain employees and a corporate social investment trust (CSI Trust)....
KWV International has launched the second phase of its assault on the South African market with the introduction of its KWV 3-year-old brandy and Cathedral Cellar and KWV Classic ranges as it expands ...
Distell has appointed Don Gallow as its new director of international operations, in place of Etienne Heyns who left the company two weeks ago. ...
The Brown-Forman Corporation has added the Durbanville Hills range of wines from South Africa to its US portfolio....
Distell's headline earnings have rocketed by 34.5% to ZAR482.2m (US$75.2m) for the year to 30 June, thanks to improved performance from all the company's assets....
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