Tribunal prohibits AkzoNobel's proposed acquisition of Plascon entities in Africa
The Competition Tribunal has issued an order prohibiting the proposed merger of Amsterdam-based chemicals company AkzoNobel and paint and coatings manufacturers Kansai Plascon Africa (KPA) and Kansai Plascon East Africa.
This comes a year after the Competition Commission prohibited the proposed acquisition, saying it would likely result in a substantial prevention or lessening of competition in the market for the manufacture and supply of decorative coatings.
According to the commission, the merger would combine the largest and second-largest manufacturers of decorative coatings, the Dulux and Plascon brands manufactured by AkzoNobel and KPA, respectively.
The merging parties subsequently approached the tribunal with a request for consideration, seeking an order that the merger be approved subject to a proposed divestiture of KPA’s Micatex brand (a sub-brand of the Plascon brand), a supply commitment relating to colourants and other public interest related commitments.
The tribunal heard evidence over ten days from factual and economic expert witnesses, including evidence on the commission’s market testing report on the proposed divestiture.
Upon consideration of all the evidence presented to it, the tribunal has prohibited the proposed transaction.
The reasons for its decision will be issued in due course.
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