Johannesburg, 13 February 2020 - Mpact notes the media statement issued by the Competition Commission (the Commission) today regarding its referral of a settlement agreement, which Mpact reached with the Commission, to the Tribunal for confirmation as a consent order. The settlement agreement relates to the acquisition of various minority interests by Mpact’s predecessor-in-title, prior to Mpact’s listing on the JSE in 2011, which were not notified to the Competition Authorities at the time the shareholdings were acquired.
Mpact and the Commission reached a comprehensive settlement amounting to R7 million to resolve all matters relating to the minority shareholdings which it held in these entities. The settlement agreement is comprehensive in that it covers the failure to obtain the prior approval of the Competition Authorities as well as any potential concerns, which the Commission may have regarding the relationship between Mpact and the sheet plants concerned.
At all relevant times, Mpact and the sheet plants were principally in a supplier-customer relationship and Mpact had a significant minority shareholding in the sheet plants concerned. As such, Mpact has always maintained, contrary to the Commission’s characterisation thereof, that the relationship between it and the entities in which it had shareholdings has not been collusive in nature. However, the settlement agreement finally resolves all potential concerns in this regard.
Issued on behalf of:
Contact: Bruce Strong, Chief Executive Officer
Tel: +2711 994-5508
Keyter Rech Investor Solutions
Contact: Marlize Keyter
Tel: 083 701 2021 / 087 351 3810
Issue date: 13 February 2020
JSE code: MPT
Mpact is one of the largest paper and plastics packaging and recycling business in Southern Africa with customers that include packaging converters, fruit producers, FMCG companies and other consumer and industrial packaging companies. Mpact’s integrated business model is uniquely focussed on closing the loop in plastic and paper packaging through recycling and beneficiation of recyclables.
Mpact has 43 operating sites, 21 of which are manufacturing operations located in South Africa, Namibia and Mozambique. Sales in South Africa accounted for approximately 87% of Mpact’s total revenue for the current period, while the balance was predominantly to customers in the rest of Africa.