The Competition Commission of South Africa (“Commission”) has recently decided on the following multiple merger and acquisition transactions:
- The acquisition of 200 Rivonia Road (Pty) Ltd, referred to as (“Rivonia”), by K2024135390 (South Africa) (Pty) Ltd, known as (“New HoldCo”). This transaction was approved without conditions. The acquiring firm, New HoldCo, is a consortium consisting of two family trusts and Nedbank Limited. Post-merger, New HoldCo will be owned equally by the consortium and the sellers of Rivonia. The target property, Rivonia, is a medical centre located at 200 Rivonia Road, Morningside, Sandton, which hosts several medical professionals and businesses, including radiologists, oncologists, dentists, and a Dischem Pharmacy, among others. The Commission concluded that the transaction would not substantially lessen competition in any market and raised no public interest concerns.
- The approval of the Independent Institute of Education (Pty) Ltd’s (“IIE”) acquisition of the Sandown Conference and Learning Centre from FirstRand Bank Limited. The acquiring firm, IIE, is owned by ADvTECH Limited, a public company listed on the Johannesburg Stock Exchange. The property in question, situated at 112 Grayston Drive, Sandown, Johannesburg, previously served as a training centre for FirstRand but is currently non-operational. To address public interest concerns, the acquiring firm committed to employing security services and cleaning services from historically disadvantaged persons (“HDPs”) during the property’s refurbishment and subsequent operation, respectively, for three years. The Commission found no competition concerns in this transaction.
- The Commission also approved the Central Energy Fund SOC Limited’s (“CEF”) acquisition of various assets that comprised the SAPREF Refinery, with certain conditions. CEF, a state-owned company, controls several subsidiaries, including Petroleum Oil and Gas Corporation of South Africa (“PetroSA”) and Avedia Energy. The SAPREF Refinery, located in Durban, KwaZulu-Natal, is currently dormant but historically produced various petroleum products such as petrol, diesel, jet fuel, and lubricants. To mitigate employment concerns, CEF committed to transferring all SAPREF employees to the acquiring entity on no less favourable terms. The Commission ruled that the transaction would not significantly affect competition and approved the merger with these conditions.
- The acquisition by K2022753286 (Pty) Ltd (“K2022”) of rental enterprises from Inani Prop Holdings (Pty) Ltd was approved without conditions. K2022, owned by a family trust with beneficiaries considered HDPs, serves as an acquisition vehicle and does not directly engage in business activities. The properties involved include Menlynwoods Office Park and Rigel Office Park in Pretoria, Bradenham Hall in Rivonia, and Westway in Westville, Durban. The transaction was seen to not lessen competition in the market nor raise any public interest issues.
If you are considering selling or buying a business or shares in a business, or are already involved in such a transaction, consider consulting our M&A specialist at CHM.
Our experienced team provides tailored advice to navigate the complexities of mergers and acquisitions, ensuring that your interests are protected and that you achieve the best possible outcomes. Whether you need assistance with due diligence, valuations, negotiation strategies, or structuring deals, we are here to guide you through every stage of the process.
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