SA and Namibian authorities approve plumbing and sanitary ware merger
The South African Competition Commission (SA Commission) and the Namibian Competition Commission (NaCC) both unconditionally approved the acquisition by Grohe Luxembourg Four S.A. (Grohe Luxembourg) of Main Street 1254 (Watertech HoldCo). Grohe Luxembourg is a newly established company which is controlled by Grohe Group and the Lixil Corporation. Grohe Group and the Lixil Corporation both sell sanitary ware products.
Watertech HoldCo is also a newly established company and is a wholly-owned subsidiary of Distribution and Warehousing Network. Watertech HoldCo's subsidiaries, the Watertech Companies, comprise Cobra Watertech, Isca, Libra Bathrooms, Vaal Sanitaryware, Apex Valves South Africa and Exipro Manufacturing. The Watertech Companies supply a variety of bathroom and kitchen plumbing and sanitary ware products.
Although the merger parties both operate in the market for the sale of taps, mixers and shower fittings, the SA Commission and the NaCC found that the transaction is not likely to substantially prevent or lessen competition in South Africa and Namibia respectively. The SA Commission also found that the transaction will have a positive impact on the public interest.