The Competition Tribunal has reached a R2-million settlement with pharmaceuticals group Adcock Ingram with regards to its proposed merger with BB Investment, a wholly owned subsidiary of the Bidvest Group.
The Competition Commission earlier referred a complaint to the tribunal, alleging that Adcock Ingram and other respondents had possibly contravened Section 13A(3) of the Competition Act, through the pre-implementation of the merger.
In April 2014, the commission was notified by BB Investment and Bidvest of its intention to acquire a controlling interest in Adcock. When the commission investigated the merger, it found evidence that suggested Bidvest may have acquired control of Adcock prior to obtaining approval from the tribunal.
To avoid protracted and expensive litigation, the respondents have, without admitting guilt, reached the settlement, agreeing to pay R2-million and to develop, implement and monitor a competition law compliance programme for senior management and directors.