Competition Commission prohibits cardboard manufacturers’ merger
The Competition Commission has prohibited packaging manufacturer Corruseal’s proposed acquisition of Boxlee and Pride Pak, as it is likely to substantially prevent or lessen competition.
Corruseal owns varying interests in several businesses, most of which operate in the industry for the manufacture and supply of packaging products including containerboard paper and corrugated board, as well as corrugated packaging.
Boxlee and Pride Pak manufacture and supply corrugated boxes and packaging, including single face board, regular slotted containers, dye cut self-erecting containers and trays.
The commission found that, as Corruseal, Boxlee and Pride Pak are in a horizontal and vertical relationship, the proposed transactions were not likely to result in unilateral effects.
“The industry and its affected markets are already characterised by high levels of concentration along the value chain, market transparency, multimarket contact, high and increasing barriers to entry, among other considerations,” the commission said in a statement, noting that the proposed transactions were likely to strengthen coordination.
“Post-merger, it would be easy to reach terms of coordination and monitor deviations from coordinated conduct.
“Further, and considering the concerns received during the investigation, we are concerned about the foreclosure of market participants that are not vertically integrated or engaged in coordinated conduct in the industry and in the affected markets,” it stated.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
