Description of Activities

Description: The Commission resolved to approve without conditions the acquisition by Karsten Namibia Agriculture (Pty) Ltd of the business conducted by First Grapes (Namib) (Pty) Ltd (“First Grapes”), and the business assets used to conduct the business comprising of, amongst others, the immovable property (i.e., the farm), movable assets, information technology, and intellectual property. 

Acquiring group: The primary acquiring group provides consulting services specifically focused on the agricultural sector and the market for importing packing material for grapes. Further, the acquiring group leased the business and business assets of the target undertaking and currently also operates the business of cultivating, harvesting, and distributing premium-quality table grapes to the international market, as well as a small percentage of raisins.

Target undertaking: The primary target undertaking, First Grapes, is in the business of cultivating, harvesting, and distributing premium-quality table grapes to international markets, as well as a small percentage of raisins.

Relevant market: The Secretariat concluded the relevant markets to be:

1. Ownership of agricultural land;

2. production of table grapes;

3. production of raisins; and

4. sale and/or lease of agricultural equipment. 

Merger Determination

The Commission has found the proposed transaction unlikely to result in the prevention or substantial lessening of competition but does raise public interest concerns, particularly regarding employment. In order to safeguard the employment of the employees of the target undertaking. Thus, the Commission approved the merger subject to employment conditions. Post-merger the acquirer will not acquire a dominant position. Further, the market is characterised by companies mainly of equal size with no company having a quarter of the market share.