Bidvest and Adcock Ingram settle with competition watchdog in merger case
Bidvest’s and Adcock Ingram’s offer to pay a combined R2m fine without admitting guilt was accepted by the Competition Tribunal on Thursday.
According to the commission, Bidvest acquired a controlling stake in pharmaceutical group Adcock Ingram in 2014 before getting approval from competition authorities.
"In order to avoid protracted and expensive litigation, the respondents have, without admitting guilt, reached a settlement with the Competition Commission," Adcock Ingram said on Thursday.
"The settlement has been confirmed by the Competition Tribunal.
"As part of the settlement, the respondents have agreed to pay a settlement amount of R2m and to develop, implement and monitor a competition law compliance programme for senior management and directors."
Bidvest’s share price fell 3.7% to R155.24 and Adcock Ingram’s 2.9% to R56.77 in a generally weak day for JSE shares on Thursday.
Adcock Ingram said in its statement it "had possibly contravened section 13A(3) of the Competition Act 89 of 1998, as amended, by pre-implementation of a merger".