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COMPETITION TRIBUNAL
REPUBLIC OF SOUTH AFRICA
Case No.: LM021May25
In the matter between:
La Concorde South Africa (Pty) Ltd Primary Acquiring Firm
and
Paal-Vallei Botteleringmaatskappy (Pty) Ltd Primary Target Firm
Approval
[1] On 12 June 2025, the Competition Tribunal (“Tribunal”) unconditionally
approved the large merger wherein La Concorde South Africa (Pty) Ltd
(“La Concorde SA”) intends to acquire the entire issued share capital of Paarl-
Vallei Botteleringmaatskappy (Pty) Ltd (“PVB”). Post-merger, Hosken
Consolidated Investments Limited (“HCI”), through its subsidiary, La Concorde
SA, will acquire a % interest in PVB from Boland Wingerde Internationaal
Ltd‘s (“Boland Cellar”) (the “seller”), thereby increasing its shareholding in PVB
from % to %, and exercising sole control over PVB.
[2] The primary acquiring firm is La Concorde SA , which
is incorporated under the
laws of South Africa. It is controlled by La Concorde Holdings Limited
(“La Concorde”), which is controlled by Niveus-La Concorde Holdings (Pty) Ltd
(“Niveus”), with % shareholding. 1 Niveus is a subsidiary of HCI, a black
empowerment investment holding company listed on the Johannesburg
Panel : I Valodia (Presiding Member)
: A Ndoni (Tribunal Member)
: G Budlender (Tribunal Member)
Heard on : 12 June 2025
Order issued on : 12 June 2025
Reasons issued on : 23 June 2025
REASONS FOR DECISION
1 Both companies are South African.
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competitiontribu nal
SOLJ1li AFRICA
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Securities Exchange.2 For completeness, HCI’ s largest shareholders as of 31
December 2024 are:
a. South African Clothing and Textile Workers Union (22.9%).
b. Chearsley Investments (Pty) Ltd (7.7%).
c. Squirewood Investments 64 (Pty) Ltd (5.3%).
d. Riverprops 47 (Pty) Ltd (5%).
[3]
PVB is a South African entity which is not controlled by any single shareholder
and does not control any firm. Of relevance to this transaction is La Concorde
SA’s % shareholding interest in PVB, including Boland Cellar’ s % shares
in PVB.
[4] La Concorde SA has three (3) operational assets, namely:
(i) Laborie – a wine farm that offers hospitality and a recreational destination
located in Paarl, Western Cape. Laborie does not actively operate or
compete in the wine production industry; it does not produce wine, as its
vineyards are currently leased to a farmer who sells the grapes to KWV
Holdings, which produces and bottles wine for Laborie under the label
“Laborie”3;
(ii) a commercial retail property precinct – offering access to various retail
stores, including Builders Express, Food Lovers Market, Seattle Coffee,
Diamond Liquors, and Sportsman’ s Warehouse and Outdoor Warehouse
located in Paarl; and
(iii) PVB (the target firm) – a contract bottling company located in Wellington,
Western Cape. PVB receives raw goods and materials, processes (through
cold stabilisation, filtration, blending, and carbonation where required) and
stores and dispatches packaged wine in glass bottles, soft drinks and
carbonated water. PVB distributes its products throughout South Africa as
well as for the export market.
[5] The Competition Commission (“Commission”) found that the activities of the
merging parties do not horizontally overlap as the Acquiring Group does not
provide any bottling services in competing with PVB, and no structural change
will result from this merger since the Acquiring Group is already the largest
shareholder in the target firm. There is no vertical overlap arising from this
shareholder in the target firm. There is no vertical overlap arising from this
merger as the merging parties do not supply each other with any products or
services. We therefore support the Commission’ s view that the proposed
transaction is unlikely to substantially prevent or lessen competition in any
relevant market in South Africa.
[6] The merging parties submitted that the merger will not have any adverse impact
on employment in South Africa. In particular, there will be no retrenchments, job
2 HCI is involved in diverse investments, including hotel and leisure, media and broadcasting, transport,
diversified investments, energy, services and technology and property and exhibitions.
3 The merging parties submitted that Laborie is yet to determine the commercial arrangement relating
to winemaking, however, as it appears likely that this will be outsourced to a third party.
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losses or duplication in emp loyment positions as between PVB and La Concorde
SA (and any of its shareholders) arising from the proposed transaction.
[7] The Comm ission found that La Concorde SA has no union representation. The
employees of PVB are represented by the National Union of Food, Beverages,
W ine, Spirits & Allied Workers ("NUFBSWSAW' ). NUFBSWSAW informed the
Commission that they had not been notified of the proposed transaction. After
engaging w ith the merging parties, the Comm ission noted that NUFBSWSAW
had been notified. NUFBSWSAW has not raised any employment concerns
regarding the proposed transaction.
[8] (an employee representative for La Concorde SA) has not raised
any employment concerns either. For these reasons, we agree with the
Commission that the proposed transaction is unlikely to result in any
employment-related job losses or concerns post-merger.
[9] La Concorde SA has an indirect Historically D isadvantaged Persons ("HDPs ")
shareholding of 76.35% (with 45.05% held by black women ) through its
controlling shareholder, H CI. In contrast, the seller currently holds no HOP
ownership. According to the merging parties, HCI, a Level 2 Broad-Based Black
Economic Empo werment ("B-BBEE ") contributor, is increasing its equity stake in
PVB via La Concorde. On the other hand, the seller, a non-compliant B-BBEE
contributor, is reducing its stake in PVB. Viewed in its entirety, the proposed
transaction enhances HDPs ownership in PVB .
[1 O] Given the above, the proposed transaction does not raise any public interest
issues.
[11] In the circumstances, we unconditionally approved the proposed transaction.
Sijgr,e,d t,y:lm raan Valodia
SlgMd at202~3 17:09:29 •02;00
Reuo n:Wtnu sing lm raan V alodia
23 June 2025
Prof. lmraan Valodia Date
Ms Andiswa Ndoni and Adv Geoff Budlender SC concurring.
Tribunal Case Manager: Theresho Galane and Bobedi Seleke.
For the Merger Parties: Anthony Norton, Nicci Van der Walt, and Nicola
llgner of Nortons Inc.
For the Merger Parties: Anthony Norton, Nicci Van der Walt, and Nicola
llgner of Nortons Inc.
For the Commiss ion: Zanele Hadebe and Grashum Mutizwa.
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