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The Competition Commission is a statutory body constituted in terms of the Competition Act, No 89 of 1998 by the Government of South Africa empowered to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the South African economy. 

 

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Commission unconditionally approves sanitary and plumbing ware deal likely to bring substantial foreign direct investment

The Competition Commission has, on 21 October 2014, unconditionally approved an intermediate merger in which Grohe Luxembourg Four S.A (Grohe) intends to acquire 51% of the issued share capital of Main Street 1254 (Pty) Ltd (Watertech). Post-merger, Watertech will be jointly controlled by Grohe and Distribution and Warehousing Network Limited (Dawn). Watertech will comprise of companies based in South Africa, namely, Apex Valves South Africa (Pty) Ltd, Cobra Watertech (Pty) Ltd, Isca (Pty) Ltd, Libra Bathrooms (Pty) Ltd, Vaal Sanitaryware (Pty) Ltd and Expiro Manufacturing (Pty) Ltd, collectively referred to as the Watertech companies.

 

Grohe is a company newly incorporated in Luxembourg and jointly controlled by Grohe Group S.a.r.l and Lixil Corporation (Grohe group) whilst Watertech is a newly incorporated South African company.

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