Tribunal approves AECI’s R2.27bn buyout of Much Asphalt
3rd April 2018
By: Simone Liedtke
Writer
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The Competition Tribunal has approved AECI’s proposed acquisition of asphalt manufacturer and supplier Much Asphalt without conditions, despite the merging parties’ vertical relationship.
AECI announced in October 2017 that it would acquire Much Asphalt for R2.27-billion.
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AECI controls a number of firms that supply mining and water solutions, agrochemicals and food additives and ingredients, as well as a portfolio of specialty chemicals businesses.
Much Asphalt manufactures and supplies hot and cold asphalt products to the commercial sector and is active in the market for the manufacture and supply of asphalt and value-added bitumen products.
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The approval followed the Competition Commission’s recommendation that the transaction be approved without conditions, despite AECI subsidiaries supplying caustic soda and fluxing agents to Much Asphalt’s subsidiaries.
The commission found that the transaction would not raise any competition concerns, nor would it negatively affect public interests.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online