/ 7 September 2000

NO GO FOR ELLERINES MERGER

FURNITURE group Ellerine Holdings said its proposed takeover by rival JD Group had now been terminated as the tie-up had been blocked by the country’s Competition Tribunal. ”The agreement between JD Group and Ellerines has terminated and the Ellerines disposal will not proceed,” Ellerine said. It said the group would continue to be listed as before on the Johannesburg, Namibian and the Botswana stock exchanges. JD Group had agreed to acquire Ellerine for 49.2 million new shares but competition authorities said their merger could not proceed as it would have stifled competition in the low-tier furniture market. JD Group and Ellerine operate about 1167 stores between them, and serve primarily the low-income furniture market, dominated mainly by black buyers. – Reuters