Description of Activities

Description of transaction: The Commission resolved to approve without conditions the acquisition by Merensky of the issued share capital of the Vuka Group, comprising Vuka Timbers (Pty) Ltd and Vuka Management Services (Pty) Ltd. 

Acquiring group: The primary acquiring undertaking is Merensky Timbers (Pty) Ltd, a producer and supplier of Pine and Eucalyptus in South Africa. Its subsidiary, Singisi Forest Products Proprietary Limited, processes softwood in the KwaZulu Natal and Eastern Cape areas and manages Merensky Timber’s small pole treatment facility in Langeni, Mthatha.

Target undertaking: The primary target undertakings are entities forming part of the Vuka Group, namely Vuka Timbers (Pty) Ltd. and Vuka Management Services (Pty) Ltd. The target undertakings are manufacturers and distributors of treated Eucalyptus transmission poles and building fencing poles in South Africa, provide management services to the Vuka Group, and operate the limited sawmilling operations in South Africa intended to manage the wastage from purchases of standing timber. 

Relevant market: Concluded that it is not necessary to definitively conclude on the relevant market definition since the parties only supply on a limited and ad hoc basis the treated and untreated poles into Namibia.

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.