A PYMNTS Company

Competition Commission says no to mining chemicals merger

 |  January 24, 2012

South Africa’s Competition Commission has prohibited the proposed acquisition of Cellulose Derivatives (Pty) Ltd. by Senmin International (Pty) Ltd, citing concerns with foreclosure resulting from the merger. Senmin is a wholly-owned subsidiary of Chemical Services Limited. Cellulose Derivatives is the only local manufacturer of technical-grade carboxymethylcellulose, of which Senmin is the country’s biggest distributor. Concerns with foreclosure thus stem from the fear that competitors will be denied access to the essential input of carboxymethylcellulose.

The Competition Commission had prohibited a similar merger proposed in February 2009 on the basis of the same grounds.

Source: Competition Commission Media Release via Sharenet


Related content: Essential Facility Access in US and EU: Drawing a Test for Antitrust Policy (Angelo Castaldo & Antonio Nicita, University of Siena)