Competition Commission orders Mpact to unwind R15.5m Seyfert deal
Regulator says the company violated the Companies Act as the acquisition eight years ago reduced competition
The Competition Commission has ordered packaging and recycling group Mpact to unwind its 2011 partial acquisition of cardboard box maker Seyfert Corrugated Western Cape, as it reduced competition. The commission's order also comes after Mpact decided not to proceed with its initial application for approval to take a 49% holding in Seyfert. Mpact said it did not ask for permission because it “believed that notification was not required when the acquisition was made”. It did not agree with the commission’s ruling and said it would appeal its decision to the Competition Tribunal.
Mpact said if the unwinding were to happen, it would not have a material impact on the group. Mpact has a the market cap of about R4.2bn and valued its holding in Seyfert at R15.5m, according to its 2018 annual report. Mpact obtained its holding in Seyfert at about the same time it was spun out of paper and pulp company Mondi and listed on the JSE in July 2011. The commission said given “the nature of th...