Date : 30 March 2022
To : Bowmans Attorneys
Case Number: LM177Feb22
Dis-Chem Distribution (Pty) Ltd And CT Distribution Centre (Pty)
Ltd and KZN Warehouse (Pty) Ltd
You applied to the Competition Commission on 04 February 2022
for merger approval in accordance with Chapter 3 of the
Competition Act.
Your merger was referred to the Competition Tribunal in terms of
section 14A of the Act, or was the subject of a Request for
consideration by the Tribunal in terms of section 16(1) of the Act.
After reviewing all relevant information, and the recommendation
or decision of the Competition Commission, the Competition
Tribunal approves the merger in terms of section 16(2) of the Act,
for the reasons set out in the Reasons for Decision.
This approval is subject to:
x no conditions.
the conditions listed on the attached sheet.
The Competition Tribunal has the authority in terms of section 16(3)
of the Competition Act to revoke this approval if
a) it was granted on the basis of incorrect information for which
a party to the merger was responsible.
b) the approval was obtained by deceit.
c) a firm concerned has breached an obligation attached to
this approval.
The Registrar, Competition Tribunal
Notice CT 10
About this Notice
This form is prescribed by the Minister of Trade and Industry in terms of section 27 (2) of the Competition Act 1998 (Act No. 89 of 1998).
Contacting
the Tribunal
The Competition Tribunal
Private Bag X24
Sunnyside
Pretoria 0132
Republic of South Africa
tel: 27 12 394 3300
fax: 27 12 394 0169
e-mail: ctsa@comptrib.co.za
Merger Clearance Certificate
This notice is issued in
terms of section 16 of
the Competition Act.
You may appeal
against this decision to
the Competition
Appeal Court within 20
business days.
1
COMPETITION TRIBUNAL OF SOUTH AFRICA
Case no: LM177Feb22
Dis-Chem Distribution (Pty) Ltd (Primary Acquiring Firm)
And
CT Distribution Centre (Pty) Ltd and
KZN Warehouse (Pty) Ltd (Primary Target Firms)
REASONS FOR DECISION
[1] On 30 March 2022, the Tribunal unconditionally approved a large merger between Dis-
Chem Distribution Proprietary Limited (“Dis -Chem Distribution”) and CT Distribution
Centre (Pty) Ltd (“CTDC”) and KZN Warehouse (Pty) Ltd (“KZN Warehouse”).
Transaction
[2] The proposed transaction involves Dis-Chem Distribution acquiring the entire issued
share capital of KZN Warehouse and CTDC in terms of the two sale and purchase of
shares agreements. Upon implementation of the proposed transaction, Dis-Chem
Distribution will exercise sole control over KZN Warehouse and CTDC.
Parties to the transaction and their activities
Primary acquiring firm
[3] The primary acquiring firm is Dis -Chem Distribution Proprietary Limited (“Dis -Chem
Distribution”). Dis-Chem Distribution controls Finamics (Pty) Ltd, and Quenets
Pharmaceutical Wholesalers (Pty) Ltd.
[4] Dis-Chem Distribution is wholly owned by Dis -Chem Pharmacies Limited (“Dis -
Chem”).1
[5] Dis-Chem is active along the pharmaceutical supply chain ranging from wholesale
distribution (including logistics) to the operation of retail pharmacies. Dis -Chem
pharmacy stores are licensed to provide scheduled pharmaceutical products and
1 Other than Dis-Chem Distribution, Dis-Chem controls the following firms: Pharma Logistical Solution (Pty) Ltd; Dis-chem
Glenfair (Pty) Ltd; Dis-chem Park Station; Dis-chem Mams Mall (Pty) Ltd; and Dis-chem Festival Mall (Pty) Ltd. Dis-Chem
Distribution, Dis-Chem and the firms that are directly and indirectly controlled by Dis-Chem are collectively referred to as the
“Acquiring Group”.