11 May 2016
MPACT/Remade – RBB testifies in hearing to consider the Commission’s request for further remedies
RBB has provided expert testimony in the South African Competition Tribunal’s hearing into the merger involving paper and plastics manufacturer Mpact Limited, formerly Mondi Packaging South Africa, and Remade Holdings (Pty) Ltd, a trader of recyclable material. During the Competition Commission’s investigation, the merging parties had voluntarily offered a number of commitments in an attempt to allay the Commission’s concerns. The hearing before the Tribunal focussed on the Commission’s recommendation that those conditions should be strengthened. RBB economists Patrick Smith and Innes Barnardt prepared expert reports covering the economic nature of competition in the relevant markets, and the likely effect of the merger. During the hearing Patrick testified regarding the likely economic effects of the transaction and whether or not the conditions were justified, the bargaining economics of settlement and the offer of conditions by merging parties, and the economic uncertainty, risks and disincentives for investment that would be created through the imposition of unjustified conditions by decision makers. The Tribunal approved the merger, subject to the conditions voluntarily offered by the parties during the Commission’s investigation, and rejected the Commission’s recommendation to extend the conditions. RBB was instructed by Nortons Inc, attorneys acting for Mpact.