Expert report gets green light for grain storage merger

Genesis was retained by Afgri, a major South African agribusiness, to prepare an expert economic report for the proposed leasing of grain and oilseed silos from MGK.

The Competition Commission had previously investigated grain and oilseed storage practices, and had referred an abuse of dominance complaint against Senwes.

Genesis demonstrated to the commission that the proposed merger was unlikely to substantially prevent or lessen competition in the relevant markets for grain and oilseed storage. This was done by developing a thorough definition of the relevant markets and by using a particular focus on the limited geographic overlap between the merging parties.

The transaction received unconditional approval from the commission.