South Africa’s Competition Commission has approved Afrimat’s acquisition of Lafarge SA, subject to a number of conditions. The deal, which is worth nearly ZAR1bn (US$54.59m), was found to raise a number of competition issues, according to the Commission, and would result in the lessening of competition in the aggregates and ready-mixed concrete sectors, reports Business Day. As a result, the Competition Commission has recommended that the merged entity divests its interests in general aggregates quarries and ready-mixed concrete plants throughout South Africa.
“To restore the lost competition that would otherwise arise from the merger and in order to ensure that the merger is justifiable on public interest grounds, the commission has recommended that the tribunal approve the merger subject to the merging parties divesting of various general aggregates quarries and ready-mix concrete plants across SA ... the merging parties have agreed to these recommendations,” said the Commission.
Once concluded, the deal will see Afrimat acquire 100 per cent of Lafarge SA and its subsidiaries, known as the LSA Group.
