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Date of release: 26 April 2021
Type of matter Parties involved Commission's recommendation to the Tribunal Tribunal decision
Large merger CMH Holdings (Pty) Ltd And Ballito Motor Holdings (Pty) Ltd Approval with conditions Approved with conditions
Large merger Motus Corporation (Pty) Ltd And Renault South Africa (Pty) Ltd Approval without conditions Approved without conditions
Tribunal conditionally approves merger in the market for the supply of
Ford aftersales services and aftersales products
The Tribunal has approved the merger whereby CMH Holdings (Pty) Ltd (“CMH Holdings”) will acquire Ballito Motor Holdings (Pty) Ltd (“BMH”) from the latter’s existing shareholders, namely Skyfire 550 Trading (Pty) Ltd and SMD Trading Group CC. CMH Holdings will solely control BMH.
The acquiring group is involved in numerous activities through its subsidiaries including the retail of new and used passenger and light commercial vehicles; the provision of cars for hire; the distribution of consumables and digital marketing; the supply of aftersales services (scheduled repairs); and the import and supply of branded automotive parts for various original equipment manufacturers (“OEMs”) such as Polar Sun, Soyat, GWM, Haval, Cherry, Mahindra, Tata, Hyundai and Kia. These automotive parts are supplied to third-party, parts suppliers.
The target firm is active in the sale of new and used passenger and light commercial vehicles. It operates two dealerships, Ford and Jaguar Land Rover (“JLR”), at the same premises in Ballito, KwaZulu-Natal. It also supplies aftersales services (workshop services and repairs) and Ford and JLR branded automotive parts. The target firm currently also operates a used car business from premises in Umhlali. This business will close and does not form part of the merger. The franchise in respect of the JLR dealership will also terminate and is not part of the business to be acquired by the acquiring group. Ultimately, what will be acquired by the acquiring group is the target firm’s Ford dealership located in Ballito.
The transaction does not raise any competition or public interest concerns. The transaction has been approved subject to the condition that the JLR dealership be terminated prior to the merger implementation date. This is because the competition effects of the merger did not include CMH taking over the JLR dealership.
Motus Corporation to wholly own and control Renault SA
following merger approval by Tribunal
The Tribunal has unconditionally approved the merger whereby Motus Corporation (Pty) Ltd (“Motus”) will acquire the remaining shares in Renault South Africa (Pty) Ltd (“Renault SA”) from Renault France S.A.S (“Renault France”). Currently, the shares in Renault SA are respectively held by Renault France and Motus Car Imports (Pty) Ltd (“MCI”), a wholly owned subsidiary of Motus. Post-merger, Motus will wholly own and control Renault SA.
Motus is a wholly owned subsidiary of Motus Holdings Limited (“Motus Holdings”), a South African company listed on the JSE. The Motus Group is active in the automotive industry. It conducts business in four key business segments, namely (1) import and distribution; (2) retail and rental; (3) motor-related financial services; and (4) aftermarket parts. Through its import and distribution segment, Motus is the exclusive local importer of Renault, Hyundai, Kia, and Mitsubishi motor vehicles and parts. Through its retail segment, Motus represents numerous original equipment manufacturers (“OEMs”) in South Africa through pre-owned, passenger and commercial vehicle dealerships.
Renault SA is a private South African company which does not have any subsidiaries. Through its dealer network it is involved in importing and distributing new Renault vehicles, the sale of used Renault vehicles to dealerships, and the provision of after-sales services. Renault SA is also involved in the retail motor sector through corporate-owned dealerships.
Having considered all of the submissions, the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition in any relevant market in South Africa. In addition, the merger does not raise any public interest concerns.
Issued by:

Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
Twitter: @comptrib
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