Outcome of cases heard by the Tribunal - 12 December 2019
| Type of matter | Parties involved | Commission’s recommendation to the Tribunal | Tribunal Decision |
| Large merger | Emerging African Property Partners (Pty) Ltd And Lisaline Investment Holdings (Pty) Ltd | Unconditional approval | Unconditional approval |
| Large merger | Comair Ltd And Star Air Cargo (Pty) Ltd | Unconditional approval | Unconditional |
| Large merger | Brimstone Investment Corporation Ltd And Firefly Investments 306 (Pty) Ltd | Unconditional approval | Unconditional approval |
| Large merger | Bidvest Bank Ltd And Eqstra Investment Holdings (Pty) Ltd | Approval subject to conditions | Conditional approval |
| Large merger | Growthpoint Healthcare Property Holdings (RF) Ltd And K2019084863 (South Africa) (Pty) Ltd | Unconditional approval | Unconditional approval |
Merger approved in market for provision of rentable light industrial property
The Tribunal has unconditionally approved the proposed merger whereby Emerging African Property Partners (Pty) Ltd (EAPP) intends to acquire Lisaline Investment Holding (Pty) Ltd (Lisaline Holdings) from Enigma Property (Pty) Ltd.
EAPP is a new company established with the mandate of investing in sale and leaseback transactions where the focus is on industrial and big box retail warehousing properties with triple net leases. EAPP is to be jointly controlled by the Government Employee Pension Fund and Emerging African Property Holdings (Pty) Ltd.
In its analysis of the transaction, the Commission found that the proposed merger would not result in a significant lessening of competition. It does not raise any public interest concerns. The Commission has recommended that the transaction be approved without conditions.
Tribunal approves Comair/Star Air merger
Private-sector airline group, Comair Limited (Comair) will acquire the entire issued share capital of Star Air Cargo (SAC) and Star Air Maintenance (SAM), after the Tribunal unconditionally approved the proposed transaction.
Comair offers scheduled airline services within South Africa, sub-Saharan Africa and the Indian Ocean Islands. It operates the British Airways brand and the Kuluala low-cost airline in South Africa. The company operates 27 Boeing aircraft, 18 of which are owned by the group. The remaining 9 are leased from local and foreign leasing companies.
SAC and SAM, which provide aircraft leasing and maintenance services, hold international and domestic air service licenses to transport passengers and cargo. Their fleet comprise 10 Boeing aircraft (five are configured for cargo and five for passengers). Four of the cargo aircraft are leased to Bid-Air Cargo and the remaining to SAA Cargo. The passenger aircraft are leased to various consumers.
The Tribunal has approved the proposed merger without conditions.
Brimstone acquires sole control of Firefly
In this approved merger, Brimstone Investment Corporation Ltd (Brimstone) will move from joint to sole control of Firefly Investments 306 (Pty) Ltd (Firefly).
Brimstone, a public company listed on the JSE, is an investment holding company with various shareholding interests in companies in the health, food, financial services, property and other related sectors. Of relevance to the proposed transaction is Brimstone’s shareholding in Obsidian Health, a company whose shares are held by Firefly.
Firefly is special purpose vehicle incorporated for the purposes of holding the entire share capital in Obsidian. Obsidian supplies healthcare products to the public and private sectors within sub-Saharan Africa. Its portfolio of products includes capital equipment and medical devices used for cardiology, cardiovascular, theatre, ICU and high care purposes.
In its assessment, the Commission found that the proposed transaction does not give rise to any foreclosure concerns. It concluded that the merger is unlikely to prevent or lessen competition in any relevant market. The Commission also found that there were no public interest concerns.
Merger conditionally approved in vehicle leasing, fleet management services market
Bidvest Bank, a wholly owned subsidiary of Bidvest Group, will acquire sole control of Eqstra Investment Holdings, a company that provides end-to-end fleet management solutions.
Bidvest Bank offers banking and financial service products. Relevant to the proposed transaction is Bidvest Bank’s fleet management services. Eqstra Investment Holdings provides fleet consulting, fleet acquisition, fleet services, maintenance management, fuel management, risk management, GPS tracking and fleet re-marketing among others.
Conditions addressing employment concerns have been imposed on this transaction.
Merger approved in market for provision of rental space in hospital property in Cape Town and surrounds
This is a merger in the market for the provision of rental space in hospital property. Growthpoint Healthcare, controlled by Growthpoint Properties, intends to acquire NewCo, a newly established company created for purposes of this transaction.
Growthpoint Healthcare owns two hospital properties in KZN and the Western Cape respectively. However, it does not manage the operations at any of the healthcare facilities.
The Commission, in its assessment, was of the view that the proposed transaction is unlikely to substantially prevent or lessen competition. In addition, it has found no public interest concerns. The merger is approved without conditions.
Issued by:
Gillian de Gouveia
Communications Officer
Tel: +27 (0) 12 394 1383
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib
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