Ostrich skin producers’ merger
The South African Competition Court approved the proposed merger of the country's two largest producers of ostrich meat and skins.
Klein Karoo International (KKI) and Mosstrich announced their intention to merge in July 2018. However, the South African Competition Commission objected. It decided that the proposed merger could lead to a “significant decrease in competition” in the domestic ostrich meat market.
The commission was less concerned about the skins, because most of the ostrich skins that the companies produce are exported. Feathers are another byproducts of ostrich meat production.
Both companies appealed this decision, which meant that the case would be brought to court. The court published its decision on August 15, which put forward special conditions for the transaction. The companies shall guarantee the supply of certain volumes of meat and feathers to the domestic market. Court requirements did not affect the supply of ostrich skins.