COUNTRY BIRD SAGA
Competition Tribunal should block CBH approval, says Sovereign
Country Bird motivated by financial difficulties and is unlikely to deliver on BEE requirements, Sovereign argues
Sovereign Foods has told the Competition Tribunal that the bid by Country Bird Holdings (CBH) to acquire it was motivated by financial difficulties and that it should set aside the Competition Commission’s approval of the proposed deal. In its filings to the tribunal, Sovereign said CBH’s difficulties would lead to concern over jobs, which had not been considered by the commission. It also said that CBH would not implement a meaningful black economic empowerment transaction if it acquired Sovereign and that this would undermine Sovereign’s efforts to secure a competitive advantage in the market. Sovereign claimed that given the Takeover Regulation Panel’s decision that CBH’s bid had lapsed, there was no merger to consider. There was no trigger and thus no jurisdiction for its exercise of any power under the Competition Act. So "the commission acted without authorisation, and erred in law, in purporting conditionally to approve the proposed takeover".
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