Home  »  Articles   »   Forestry Sector Impact Assessment Report Released

Articles
Forestry Sector Impact Assessment Report Released

December 15, 2020

Department of Trade, Industry and Competition

The final Forestry Sector Impact Assessment Report has been released.

The trade, industry and competition department announced the publication in Government Gazette 43981.

The Competition Commission sought comment on the report earlier this year.

In an earlier press release, the Commission pointed out that the study was “initiated under the new Section 21 (a) of the Competition Act which enhances the Commission’s powers to study and report on the impact of past decisions by the competition authorities in order to gain insights that may inform future action or direction within enforcement and advocacy”.

The study flows from concerns raised in several merger transactions and complaints investigated by the Commission which typically related to continuity of supply of timber from large vertically integrated firms.

The Commission found that the forestry sector is characterised by a few large vertically integrated firms which tend to dominate both upstream log supply and downstream milling and processing operations.

The study also calls for “state action which can assist in breaking the vicious cycle small non-integrated firms find themselves in so as to achieve the target of greater participation in this natural resource”.

Meanwhile, in Notice 712, the department announced mergers approved by the Competition Tribunal.

Mergers include the acquiring of EMSS Consulting (Pty) Ltd T/A Alphawave Holdings by Kagiso Capital (RF) (Pty) Ltd; Bombarder Transportation (Investment) UK Ltd by Alstom Societe Anonyme; The Alternative Power (Pty) Ltd by Corvest 12 (Pty) Ltd and the Mall of the South by RMB Investments and Advisory (Pty) Ltd and Redefine Properties Ltd.

Other notices include:

• Notice 713 – complaint referral pertaining to Shashe Trading (Pty) Ltd and Devenco 44 (Pty) Ltd;
• Notice 1329 – application for an exemption by Marang Africa Healthcare Proprietary Limited – representations invited within 20 business days;
• Notice 1330 – application for exemption by various independent chrome ore producers – representations invited within 20 business days.