Description of Activities

Description of transaction: The Commission resolved to approve without conditions the acquisition by Lactalis South Africa (Pty) Ltd of the Cremora business (to be Vista 24 (Pty) Ltd) from Nestlé South Africa (Pty) Ltd.

Acquiring group: The primary acquiring undertaking is Lactalis South Africa (Pty) Ltd, with the acquiring group involved in the production and sale of dairy products, juice and other food products as well as the distribution around the world, and the commercialization of Lactalis brand products in South Africa.

Target undertaking: The primary target undertaking is Vista 24 (Pty) Ltd, a newly formed special purpose vehicle and a wholly owned subsidiary of Nestlé South Africa (Pty) Ltd. Prior to the implementation of the transaction, Nestlé South Africa (Pty) Ltd will transfer the Cremora business to Vista 24. The target is active in the production and distribution of non-dairy creamer products, under the Cremora brand, which are primarily used in coffee and tea as a whitener/creamer, but also as a thickening agent/ingredient in baking and cooking. 

Relevant market: The Secretariat looking at the activities of the merging parties defined the product market as the production and distribution of non-dairy creamer products.

Merger Determination

The Commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition or result in any undertaking to acquire or strengthen a dominant position in the market and did not raise any public interest concerns.

However, as stated under section 50 of the Act, this approval does not relieve parties from complying with any other mandatory statutory approvals that any of the parties to this merger must comply with under Namibian Laws.