Firms involved in acquisitions told to consult commission

Business

PARADISE Food’s acquisition of Laga Industries will be investigated by the Independent Consumer and Competition Commission (ICCC), to ascertain if it is against competition laws.
This will be based on Section 69 of the ICCC Act, which prohibits acquisitions that may significantly lessen competition in a market.
To prevent going against this provision, companies involved in acquisitions should first consult and seek approval from the ICCC.
Chief executive officer of ICCC Paulus Ain said it was concerning how both companies disregarded this need to check before going through with the acquisition.
“I know Steamships Trading Company, as the previous owner of Laga, is well aware of the relevant provisions of the ICCC Act,” he said.
“This is especially when there are potential overlaps between products produced by Laga and Paradise.
“The fact that Steamships did not voluntarily notify the ICCC of its intention to sell Laga, demonstrates their blatant disregard of the ICCC Act and the laws of Papua New Guinea. The same could be said for Paradise.”

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