Assessment of large processed foods merger

Genesis was commissioned to assess the competitive effects of a large proposed merger in South Africa's processed foods industry.

The most important task of the assignment was to reach an accurate definition of the industry’s markets, as the competitive effects of the merger were likely to revolve around whether the market for the affected products could be defined as broad or narrow.

The project team combined market research with case precedent from both South Africa and the EU to reach a conclusion.

We also considered other important market dynamics such as countervailing buyer power, barriers to entry, barriers to expansion, the role played by house brands and the position of competitor brands in the market.

The proposed merger was ultimately abandoned for commercial reasons.