Competition Commission stalls Adcock-Bidvest deal - CNBC Africa

Competition Commission stalls Adcock-Bidvest deal

Southern Africa

by Trust Matsilele 0

Conditional approval for stalled Adcock-Bidvest deal. PHOTO: Projecthealth

The commission told CNBC Africa that it had given a conditional approval for the possible acquisition of the drug maker, Adcock Ingram by Bidvest.

[DATA BVT:Bidvest] raised its stake in Adcock Ingram to 34 per cent.

(READ MORE: Bidvest takes CFR-Adcock Ingram deal to court)

“We are recommending a conditional approval subject to certain safeguards to protect employment,” Hardin Ratshisusu, divisional manager, mergers and acquisitions at the Competition Commission told CNBC Africa.

Ratshisusu noted that, the Act guiding the Competition Commission requires the body to assess the public interest factors, the effects of the transaction and the competition effects

“We have been investigating this case and we have made the referral to the Competition Tribunal. We have had numerous discussions with Bidvest, but they did not submit a firm commitment on what is likely to happen because of the merger,” added Ratshisusu.

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“They had indicated to us that the deal is likely to have an adverse effect on employment so we allowed them to make an analysis on the level of impact.”

Ratshisusu explained that the commission recommended the retrenchments suggested by the company adding that the number would be limited to the estimates made to the commission. 

(READ MORE: Adcock Ingram posts 39 million rand headline loss)

“We require parties to embark on a rational process before coming to us and if they assume that there are going to be job losses, they should be open to us,” Ratshisusu said.

“We have to promote the competitiveness and adaptability of the economy which is the main objective of the Act, at the same time looking at the public interest factors.”

The Bidvest-Adcock deal was filed with the Competition Commission in April this year. 

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