The Competition Tribunal has approved the proposed transaction whereby FFS Calpet seeks to acquire all shares of Calulo Marine from Calulo Services.
FFS Calpet is jointly controlled by Calulo Petrochemicals, Bud Chemicals and Minerals and FFS Calpet Management. The firms are involved in procuring, processing, refining, distributing and marketing industrial heating fuels.
FFS Calpet also sells creosote wood preservative used in the utility pole industry and produces base oil used in the manufacture of lubricating oils.
Calulo Marine was established in 2003 as the first independent, black-owned business to operate as a supplier of marine fuels and lubricants to the local marine sector. The firm is a wholly owned subsidiary of Calulo Services which is, in turn, controlled by Calulo Investments.
It markets and distributes marine fuels along the South African coastline, primarily to the fishing industry, State-owned utility Transnet’s national ports and the South African Navy.
Calulo Marine sources marine fuel from Engen Petroleum Group and the acquiring group. It does not have any export activities.
The Commission Commission in an assessment of the transaction concluded that the proposed merger was unlikely to substantially prevent or lessen competition in any relevant market. It also found that the transaction did not raise any public interest concerns.