Commission denies merger request
THE COMPETITION Commission yesterday prohibited two mergers, whereby KwaZuluNatal-based packaging giant, Corruseal Group, intended to acquire two privately-owned sheet board makers, Boxlee and Pride Pak Packaging.
Corruseal owns varying interests in several businesses, most of which operate in the industry for the manufacture and supply of packaging products, including container board paper, corrugated board as well as corrugated packaging.
Johannesburg-based 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 merger assessment primarily focused on co-ordinated effects likely to arise in the market for the manufacture and supply of corrugated board and in the market for the manufacture and supply of corrugated packaging.
The commission said it had particularly conducted this assessment in light of ongoing collusion investigations in the industry and in the affected markets.