COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 45/LM/Aug10
In the matter between:
Lodestone Investment Holdings (Pty) Ltd Acquiring Firm
And
Candy Tops (Pty) Ltd Target Firm
Panel : Andreas Wessels (Presiding Member)
Medi Mokuena (Tribunal Member)
Merle Holden (Tribunal Member)
Heard on : 29 September 2010
Order issued on : 29 September 2010
Reasons issued on : 08 October 2010
Reasons for Decision
Approval
1] On 29 September 2010, the Competition Tribunal (“Tribunal”)
unconditionally approved the acquisition of Candy Tops (Pty) Ltd
(“Candy Tops”) by Lodestone Investment Holdings (Pty) Ltd
(“Lodestone”).1 The reasons for approving the transaction follow.
1 At the time of filing this merger, Lodestone was in the process of changing its name to Lodestone
Brands (Pty) Ltd. The merging parties at the hearing informed the Tribunal that this name change has
been effected.
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The parties and their activities
2] The primary acquiring firm is Lodestone Investment Holdings (Pty) Ltd
(“Lodestone”)2, a company incorporated under the company laws of the
Republic of South Africa. Lodestone is part of the Standard Chartered
Bank group of companies (“SCB group”) . The SCB group’s activities
relate to various banking services.
3] The primary target firm is Candy Tops (Pty) Ltd (“Candy Tops”). Candy
Tops manufacturers, markets and distributes a wide range of sugar
confectionery products, including toffees, chews, éclairs, centre-filled
candy, lozenges, bubblegum, ball-gum and coated candy. These
products are sold and marketed under the “Candy Tops” and “Sovereign”
brands.
The proposed transaction
4] In terms of the proposed deal Lodestone will acquire inter alia shares
constituting in excess of 51% of the entire issued share capital of Candy
Tops. According to the merging parties Candy Tops will pursuant to the
implementation of the proposed transaction be under the sole control of
Lodestone.
Overlap and impact on competition
5] The activities of the merging parties do not overlap. The SCB group has
no investments or interests in firms in South Africa that engage in
commercial or business activities that would be considered by buyers as
reasonably interchangeable with or substitutable for the products or
services of Candy Tops. The proposed deal therefore does not result in
2 See footnote 1 above.
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a substantial prevention or lessening of competition in any plausible
market.
Public interest
6] The merging parties confirmed that there would be no job losses in
South Africa as a result of the proposed deal. No other public interests
issues arise from the proposed deal.
Conclusion
7] Due to the fact that the activities of the merging parties do not overlap
and a lack of public interest concerns the proposed transaction is
approved without conditions.
____________________ 08 October 2010
Andreas Wessels DATE
Medi Mokuena and Merle Holden concurring
Tribunal Researcher : Mahashane Shabangu
For the merging parties : Mark Garden of Edward Nathan
Sonnenbergs Inc
For the Commission : Lerato Monareng of the Mergers and
3
Acquisitions Division
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