South Africa’s Competition Commission has stopped the merger of timber sourcing company Bedrock Mining Support with the hardwood timber operations of Mondi, a paper and packaging group.
The Competition Commission blocked the merger on the grounds it might lead to “co-ordination”, effectively creating a monopoly.
Bedrock wants to acquire Mondi’s hardwood timber plantations in Mpumalanga and Limpopo. Bedrock manufactures and sells timber-based underground support packs for deep-level gold and platinum mines through its sawmills.
Mondi’s hardwood timber plantations – Letaba, Numbi and De Kaap – are involved in the production and sale of hardwood timber and their customers include Bedrock and Reatile, which both use the timber for mining support.
The companies argue that the commission’s decision does not allow for competition which takes place from non-timber mining supports.
