Merger Alert: Outcome of mergers decided by the Tribunal

The Competition Tribunal ("Tribunal") has, subject to a condition which seeks to protect jobs, approved the proposed merger wherein Seventy Friesland (Pty) Ltd (“Seventy Friesland”) intends to acquire the business known as Irene Country Lodge (“ICL”) and Irene Farm ("the target businesses") as a going concern.

Seventy Friesland does not have any activities in South Africa. However, the acquiring group is a property investment company and is active in the property development market focusing on industrial, commercial, retail and residential properties. The acquiring group owns a portfolio of rentable immovable properties and vacant land throughout South Africa.

The target businesses are active in the hospitality sector and offer luxury accommodation, dining, conference, function and wedding venues and a spa. Irene Farm is a working dairy farm and a farm shop and also offers hospitality services such as dining, conference and function facilities and a wedding venue.

The Tribunal has unconditionally approved the proposed merger whereby DP World Logistics FZE (“DPWL”) intends to acquire Cargo Services Seafreight Ltd (“Cargo Services”). Following the implementation of the proposed transaction, Cargo Services will be solely controlled by DPWL.

DPWL, incorporated in the United Arab Emirates, is ultimately wholly owned by DP World Ltd (“DP World”). DP World operates marine terminals and other port infrastructure worldwide. In South Africa, DP World is active through Imperial Logistics South Africa Ltd (“ILSA”). ISLA’s activities include the provision of freight forwarding services, contract logistics services and market access services to retail and pharmaceutical customers. ILSA also offers end-to-end import and export solutions.

Cargo Services is incorporated in the Cayman Islands. In South Africa its activities include logistics services, freight forwarding and related services such as supply chain management/optimisation and container space utilisation.