Competition Commission stops merger of paper recycling companies

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The Competition Commission said on Wednesday that it would prohibit the proposed merger whereby Corruseal Group (Pty) Ltd intended to acquire Neopak (Pty) Ltd.

It said Corruseal's activities include the collection and recycling of waste paper, the manufacture and supply of recycled containerboard paper , and the manufacture of corrugated sheets and box packaging products using recycled containerboard paper as an input .It said Neopak is only active in the upstream market for the manufacture and supply of recycled containerboard paper and does not have its own downstream operations.

Commenting after the commission’s decision, Angelo Tzarevski — associate director in the competition and antitrust practice at Baker McKenzie in Johannesburg — said transactions are rarely prohibited by the competition authorities. “A transaction is prohibited when it raises substantial competition and/or public interest concerns that cannot be addressed by suitable remedies,” Tzarevski said.

 

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Competition Commission stops merger of paper recycling companiesThe Competition Commission said on Wednesday that it would prohibit the proposed merger whereby Corruseal Group (Pty) Ltd intended to acquire Neopak (Pty) Ltd.
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