The Competition Commission of South Africa has approved the proposed transaction whereby Manuchar South Africa Proprietary Limited (MSA) intends to acquire Anorel, without conditions.
Manuchar, a Belgium-based international distributor of chemicals in emerging markets, has bought a 50% stake in fertiliser distributor Anorel (Pty) Ltd, the South African subsidiary of another Belgian company, Anorel NV, a supplier of crop nutrition products.
The deal gives Manuchar the opportunity to expand its offerings to the high-precision agriculture market across Southern Africa.
✔️The Manuchar Group operates a globally and locally integrated network in 37 countries situated across Latin America, Africa, the Middle East, and Asia, with its headquarters in Antwerp, Belgium. The group’s business involves logistics, chemical distribution, back-to-back trade services in commodities such as steel, polymers and paper, and dealing in goods and services servicing the home and personal care, food and feed and agriculture and mining industries. It trades in a wide range of commodities, including chemicals, steel and polymers. The company has had a South African presence since 2003, and its nearly 100 employees are based in Johannesburg, Durban and Cape Town. In South Africa, the Manuchar Group conducts its business through MSA.
✔️MSA’s business includes the importing and distribution of wax and chemical raw materials, the provision of third-party distribution services, and the sale of fertilisers. Relevant to the proposed transaction are MSA’s third-party distribution services business and the fertiliser business which relates to the sale of water-soluble fertilisers to distributors and to fertiliser manufacturers who use them in their own fertiliser blends. MSA’s customers are based throughout South Africa.
✔️Anorel is wholly owned by a Belgian national. Anorel distributes a wide range of fertilisers, specialising in water-soluble fertilisers and biostimulants. The company has established long-term relationships with its customers in South Africa in the 23 years of its existence.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
Sources: Compcom.co.za, Farmer’s Weekly
