HISA SEPT 2015 low b

Background Image

Previous Page

Next Page

Page Background

Cement & Concrete

www.theconcreteinstitute.org.za +27 11 315 0300 Need help with your concrete ? We offer a free advisory service for general concrete queries. Perfect concrete with us. We are there when you need support

R

aubex planned to acquire the

quarrying company as well as

OMV Kimberley Mining, post

merger Raumix and ultimately Rau-

bex would control the OMV Group.

The merging parties had notified

the Competition Commission about

this acquisition in 2014 but had elect-

ed not to go ahead with it given the

concerns raisedby the Commission at

the time. The Commission has found

that the merged entity would have

the ability and the incentive to raise

the costs of its rivals in the down-

streammarket for road surfacing and

rehabilitation in the Kimberley area.

In this proposed transaction, the

Commission’s concerns remain. The

proposed transactionwould substan-

tially prevent or lessen competition

in the market for the production

and supply of aggregates used in the

surfacing of national roads in the

Kimberly area. Other than the OMV

Group, there is no other supplier in

Kimberley that has supplied the road

stones required for the surfacing of

national roads.

With the acquisition, Raubex

would have the ability and incen-

tive to raise costs to its competitors

downstream in instances where they

would require road stones that meet

the Committee of Land Transport

Officials (COLTO) specifications as re-

quired by the South African National

Roads Agency (SANRAL).

The Commission considered pos-

sible supply remedies proposed by

the merging parties, but concluded

that the remedies did not adequately

address the concerns. Also, the

merging parties did not make any

submissions on efficiencies or pro-

competitive gains that would allevi-

ate the concerns.

The Raubex Group of companies is

active in a range of activities such as

road construction (including surfac-

ing, rehabilitation andmaintenance),

the production and supply of value

added bitumen products, the pro-

duction and supply of aggregates

from quarries, contract crushing of

aggregates and other raw materials,

the production and supply of asphalt

andmaterials handling and benefac-

tion for the mining industry.

■

Commission blocks Raubex’s acquisition

The Competition Commission

has blocked Raumix Aggregates,

asubsidiaryof theRaubexGroup,

acquiring OMV Kimberley, a

construction quarry and ready

mix company.