Assessment of Spur Trees Jamaica Limited Acquisition of Controlling Interests In Canco Limited

Spur Tree Spices Jamaica (‘Spur Tree’), which manufactures, distributes and sells wet seasonings and sauces, has acquired majority shareholding in Canco Limited (‘Canco’).  Canco trades as Linstead Market and is involved in the agro-processing of foods such as canned ackee and canned callaloo. Spur Tree had responded to an expression of interest from Canco’s directors and shareholders to purchase shares in Canco and the parties subsequently entered into a Share Purchase Agreement and Share Subscription Agreement. The proposed transaction was brought to the attention of the FTC by the parties and was reviewed pursuant to section 17 of the Fair Competition Act, 1993. Section 17 prohibits any agreement that contains provisions that have as their purpose the substantial lessening of competition, or have or are likely to have the effect of substantially lessening competition in a market in Jamaica. The assessment determined that the relevant market comprised canned callaloo and canned ackee supplied in geographic areas outside of Jamaica and therefore the acquisition is unlikely to adversely affect competition in any market in Jamaica. Accordingly, the assessment concluded that Spur Tree’s acquisition of majority shareholding in Canco is unlikely to breach section 17 of the Fair Competition Act.

Case No. 8200-22 Spur Tree Acquisition of Canco Report