Commission recommends approval of Ladismith Cheese deal
The Competition Commission has recommended that the Competition Tribunal approve the proposed transaction whereby Fairfield Dairy intends to acquire Ladismith Cheese Company, with conditions.
The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any relevant market.
Further, to address public interest concerns relating to the promotion and development of historically disadvantaged persons, small and medium-sized enterprises and/or workers, Fairfield has agreed that the merged entity will increase its yearly spending on enterprise and supplier development, and skills development and related initiatives, which will be measured against the spend in the most recently reported financial year.
Fairfield processes, produces, packages and sells dairy products for South African retailers, under retailer brands, or house brands, as well as its own brand, which is First Choice.
It supplies the retail and non-retail channels with fresh, pasteurised milk, flavoured milk, yoghurt-based smoothies, yoghurt, butter, whipping cream, cheese and amasi, among other products.
Ladismith produces, markets and sells cheese, skimmed milk and butter for the retail and non-retail channels in South Africa. It also engages in the production, marketing and sale of powdered-milk products in non-retail channels in South Africa.
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