OUTCOME OF MATTERS CONSIDERED BY THE TRIBUNAL: Tribunal approves two renewable energy mergers
| Type of matter | Parties involved | Commission’s recommendation to the Tribunal | Tribunal Decision |
| Large merger | Greenstreet 1 (Pty) Ltd and Solar Capital De Aar 3 (RF) (Pty) Ltd | Approval without conditions | Approved without conditions |
| Large merger | Aker Horizons AS and Mainstream Renewable Power Ltd | Approval without conditions | Approved without conditions |
Greenstreet 1 (Pty) Ltd and Solar Capital De Aar 3 (RF) (Pty) Ltd
In January 2021, the Tribunal unconditionally approved the large merger whereby Greenstreet 1 (Pty) Ltd (“Stanlib Fund II”) sought to acquire a joint controlling interest in Solar Capital De Aar 3 (RF) (Pty) Ltd (“SCDA 3”).
Subsequent to that merger, the Tribunal has also unconditionally approved the transaction whereby Stanlib Fund II will acquire additional shareholding in SCDA 3. Post-transaction, Stanlib Fund II will hold a sole controlling interest in SCDA 3.
Stanlib Fund II is a private equity investment fund established with the objective of acquiring a portfolio of long-term infrastructure assets. It is ultimately controlled and owned by Stanlib Asset Management (Pty) Ltd.
The acquiring group is involved in providing financial services. Of relevance to this transaction are the activities of the acquiring group in the renewable energy sector, in particular, in wind and solar photo-voltaic (PV) independent power producers (“IPPs”) which are operating under the Renewable Energy Independent Power Producer Procurement Programme (“REIPPPP”).
Through the previous merger, the acquiring group jointly controls the target firm, SCDA 3, which is active within the renewable energy sector as an IPP contracted under the REIPPPP to supply solar PV to Eskom. SCDA 3 is in the Northern Cape within the Pixley ka Seme District Municipality.
The Tribunal has approved the transaction without conditions on the basis that it is unlikely to substantially prevent or lessen competition in any of the relevant markets in South Africa. In addition, the transaction does not raise any public interest concerns.
Aker Horizons AS and Mainstream Renewable Power Ltd
Following the unconditional approval of this transaction by the Tribunal, Aker Horizons AS (“Aker”) will acquire sole control of Mainstream Renewable Power Ltd (“MRP”).
Aker was established by Aker ASA, a Norwegian industrial ownership company with investments in serval sectors and markets. Aker does not have a presence in South Africa and the transaction will establish Aker’s entry into the country. In South Africa, Aker ASA is active via Aker Biomarine AS, also a Norwegian firm, which supplies krill-derived biotech products.
MRP, an Irish firm, is a leading global renewable energy company that develops, builds, and operates wind and solar power plants (utility-scale renewable assets) in various markets worldwide, including South Africa. In South Africa, MRP developed and brought to financial close three operational wind projects and two wind projects, through Lekela Power B.V.
The Tribunal has found that the merger is unlikely to substantially prevent or lessen competition in any market in South Africa. Further, it does not raise any public interest issues. Therefore, the Tribunal has approved the transaction without conditions.
Issued by:
Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib
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