Rainbow Chickens gets green light on acquisition

Genesis was commissioned to provide an assessment of the potential competitive effects of Rainbow Chickens’ acquisition of Bushvalley Chickens, a small poultry processing facility in Tzaneen.

This involved two important processes. Firstly, a process of developing a comprehensive understanding of the poultry products industry and its various markets and, secondly, a process of assessing both the potential horizontal and vertical effects of the acquisition.

When assessing the proposed acquisition, the team found that the transaction was unlikely to result in substantially reduced competition in the South African market for poultry products.

This was due to the fact that other significant competitors were still operating in the relevant markets, which would exert a competitive constraint on the merged entity. There was also no concern related to the potential foreclosure of access to customers for current suppliers.

The transaction was subsequently approved by the Competition Commission.