Matter of fact

● In “Tongaat: reckoning looms for ex-execs” (August 16), we incorrectly reported that Barloworld said in May it wanted out of a deal to buy Tongaat Hulett’s starch business.

In fact, Barloworld triggered a material change clause — a clause in mergers and acquisitions that allows buyers to withdraw from deals if the value of the transaction has been undermined by a significant development.

The clause may also allow for a lower price to be negotiated in a transaction.

A third party is adjudicating the dispute between Tongaat Hulett and Barloworld and is expected to give a ruling on September 21.

We regret the error.