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Belgotex Responds to Merger Collapse

by Ofentse Sefolo
Belgotex Responds to Merger Collapse
Belgotex has responded to the “Nouwens and Van Dyck Joint Statements” on the recent announcement that their merger would no longer continue.

Dear Industry Stakeholders,

It is with great regret that we read and interpret the above-mentioned announcements.

Since we were asked for comment on the merger and whether we would object to the Competition Commission’s request, we maintained that we would not stop or interfere with what was best for the industry. In our opinion, the best for our industry is healthy business, which employs as many people as possible and does a great job at promoting the product category that we all play in. That is what we strive for and support.

Reading both statements published by Van Dyck and Nouwens respectively, we can sympathise with the factors that have led to this decision. The challenges in the local market and the flooring industry are real. As manufacturers we have our challenges, and as industry stakeholders (whether you are in the supply chain, or the distribution channel) we are all effected by the demand for our goods or services.

The news (that is now public knowledge), is not good news for anyone in our industry.

Our view and belief are that fundamentally we all lose more than anyone gains.

We sympathize with everyone who is personally involved in the decision as it will have a devastating effect on many families and households.

We also wish the Van Dyck family the best of luck with their future and objectives, it is important for our industry.

2019 has been a challenging year, but we are optimistic and bullish about South Africa in the medium term. We have continued to invest in assets which allow us to make product that is truly world class and therefore traded on the global stage, as well as our own distribution network outside of South Africa.

Kind Regards,

Everyone at Belgotex

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