Tribunal approves merger in SA market for wholesale distribution of marine fuel

The Tribunal has this morning approved the proposed transaction through which FFS Calpet (RF) (Pty) Ltd (FFS Calpet) seeks to acquire all the issued share capital in Calulo Marine (Pty) Ltd (Calulo Marine) from Calulo Services (Pty) Ltd.

FFS Calpet is jointly controlled by Calulo Petrochemicals (Pty) Ltd, Bud Chemicals and Minerals (Pty) Ltd and FFS Calpet Management. The firms are involved in procuring, processing, refining, distributing and marketing industrial heating fuels. The acquiring group also sells creosote wood preservative used in the utility pole industry and produces base oil used in the manufacture of lubricating oils.

Calulo Marine was established in 2003 as the first independent, black-owned business to operate as a supplier of marine fuels and lubricants to the local marine sector. The firm is a wholly owned subsidiary of Calulo Services which is, in turn, controlled by Calulo Investments.

It markets and distributes marine fuels along the South African coastline, primarily to the fishing industry, Transnet National Ports and the South African Navy. Calulo Marine sources marine fuel from Engen Petroleum Group and the acquiring group. It does not have any export activities.

In its assessment, the Commission concluded that the proposed merger is unlikely to substantially prevent or lessen competition in any relevant market. It also found that the transaction does not raise any public interest concerns.

The Tribunal approved the merger without conditions.

Issued by:

Gillian de Gouveia

Communications Officer

Tel: +27 (0) 12 394 1383

Cell: +27 (0) 82 410 1195

E-Mail: GillianD@comptrib.co.za

Twitter: @comptrib