Competition Commission places conditions on Pakco deal with Rhodes Food
The Competition Commission placed conditions on two food-group-related deals on Tuesday: Belgian confectioner Puratos’s acquisition of half of Bidcorp’s bakery division, and Rhodes Food’s acquisition of instant mix maker Pakco. The commission said it was dissatisfied with a five year restraint of trade agreement between Puratos and Bidcorp, insisting that it be reduced to three years. "Having considered the restraint of trade, the act and the relevant case law, it is the Commission’s view that the restraint results in a substantial lessening of competition as it is not reasonable and justifiable. Therefore, the transaction is approved subject to conditions," it said in Tuesday’s statement. Regarding Rhodes Food’s acquisition of Pakco, the Commission said it was worried about jobs. "The Commission has approved the merger subject to the condition, among others, that the merging parties do not retrench the affected employees," it said. Bidcorp, the food businesses of Bidvest separately...
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