By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Gunmen open fire on tourists, killing over 20 people at Kashmir resort – National
    Gunmen open fire on tourists, killing over 20 people at Kashmir resort – National
    April 23, 2025
    The government wants you to get paid not to use Google search
    The government wants you to get paid not to use Google search
    April 22, 2025
    How effective and safe are measles vaccines?
    How effective and safe are measles vaccines?
    April 22, 2025
    Vietnam clamps down on fraud on US exports, document shows
    Vietnam clamps down on fraud on US exports, document shows
    April 22, 2025
    Catholic Church head cause of death revealed; Anthony Albanese suspends campaign; Trump to attend funeral
    Catholic Church head cause of death revealed; Anthony Albanese suspends campaign; Trump to attend funeral
    April 22, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    COIN, MSTR Rally as Bitcoin Miners BTDR, MARA, RIOT Surge Over 10%
    COIN, MSTR Rally as Bitcoin Miners BTDR, MARA, RIOT Surge Over 10%
    April 23, 2025
    BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LEO, LINK, AVAX
    BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LEO, LINK, AVAX
    April 22, 2025
    Bitcoin traders warn BTC price rally may stall at K
    Bitcoin traders warn BTC price rally may stall at $90K
    April 22, 2025
    US judge transfers Binance lawsuit to Florida, citing first-to-file rule
    US judge transfers Binance lawsuit to Florida, citing first-to-file rule
    April 22, 2025
    Paul Atkins, nominated by Trump, has been sworn in as SEC chair
    Paul Atkins, nominated by Trump, has been sworn in as SEC chair
    April 22, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Competition Tribunal conditionally approves SAA acquisition
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > Competition Tribunal conditionally approves SAA acquisition
Competition Tribunal conditionally approves SAA acquisition
Business

Competition Tribunal conditionally approves SAA acquisition

Published July 26, 2023
Share
5 Min Read
SHARE

The acquisition of 51% of the issued share capital of state-owned South African Airways (SAA) by Takatso Aviation has been conditionally approved by the Competition Tribunal.

The tribunal on Tuesday announced that it had approved the transaction subject to conditions involving a moratorium on retrenchments and divestiture of the shareholding by the minority shareholders in the Takatso consortium.

If the transaction is finalised, the remaining 49% shareholding in SAA will be retained by the Department of Public Enterprises.

Takatso, a company newly incorporated for the purposes of the proposed transaction, is a consortium in which asset management firm Harith General Partners holds the majority shareholding.

Read/listen: Takatso eager to take control of SAA, ‘engaging’ with minority shareholders

The minority shareholders in Takatso are Global Aviation Operations and Syranix.

In terms of the proposed transaction, Harith – as Takatso’s majority shareholder and funder – has to raise the R3 billion in capital committed to SAA.

Competition concerns

The tribunal did not provide any further details about the divestiture or retrenchment conditions it has imposed on the transaction and indicated that the reasons for its decision will be issued in due course.

However, the Competition Commission previously recommended to the tribunal that the transaction be approved subject to divestiture and employment conditions.

These conditions were initially rejected by the parties, resulting in the commission initially recommending a prohibition of the merger.

The commission found that the merger was likely to result in a substantial lessening and prevention of competition in the domestic passenger airlines market because the transaction would likely facilitate the exchange of competitively sensitive information between SAA and domestic passenger airline Lift, through Global Aviation and Syranix having shareholding and the ability to appoint directors to Takatso’s board of directors.

Read:
SAA-Takatso deal: CompCom finalises tribunal submission
CompCom recommends conditional approval of Takatso’s SAA deal

In recommending that divestiture conditions be imposed on the transaction, the commission highlighted the investments by Harith in infrastructure projects across various sectors, stressing the relevance of its investment in Lanseria Airport to this transaction.

The commission said Global Aviation leases aircraft and also owns and operates Lift, while Syranix co-owns the Lift trademark but does not hold a domestic passenger airline operator’s licence.

Syranix provides airlines such as Lift with management support services, including commercial, customer support, branding, and associated activities.

“Takatso will have access to SAA’s competitively sensitive information by virtue of its majority stake in SAA, pursuant to the proposed merger,” it said.

“This concern is further exacerbated by the fact that the domestic passenger airlines market is highly concentrated, barriers to entry are high and is amendable to coordinated effects.”

Read:
A new broom at SAA to sweep it all under the carpet?
SAA’s preferred bidder disappointed with airline’s further R1bn bailout

To remedy this concern, the commission said it and the parties have now agreed to a divestiture condition in terms of which Global Aviation and Syranix will completely divest from Takatso prior to the transaction’s implementation.

‘Appropriate’ remedy

The commission said it considers that this ‘fix-it-first’ remedy is appropriate in the circumstances given the extent of the competition concerns identified.

It further found that Harith’s investment in Lanseria Airport is unlikely to raise vertical foreclosure concerns, considering factors such as recent investments to expand and improve the Lanseria Airport and the availability of OR Tambo International Airport as an alternative to Lanseria, among other factors.

The commission found that the merger does not raise any other substantial public interest concerns and therefore recommended that the Competition Tribunal approve the transaction subject to its recommended conditions, which are only advisory in nature.

SAA’s widely-publicised financial difficulties led to the launch of the business rescue process for the airline in December 2019.

Commenting in May on the outstanding R3.5 billion required to finalise SAA’s business rescue process, the Department of Public Enterprises pointed out that the minister of finance allocated R1 billion towards this in the February Budget Speech, with the outstanding amount to be provided by the government.

Listen as Jeremy Maggs chats with SAA interim CEO John Lamola on why the government bailout era is over for the airline (or read the transcript here):

You can also listen to this podcast on iono.fm here.

#Competition #Tribunal #conditionally #approves #SAA #acquisition

TAGGED:acquisitionapprovesCompetitionconditionallySAATribunal
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Oklahoma attorney general joins lawsuit over tribal gambling agreements, criticizes GOP governor Oklahoma attorney general joins lawsuit over tribal gambling agreements, criticizes GOP governor
Next Article Jobseekers are using white font on résumés to battle AI, tech filters Jobseekers are using white font on résumés to battle AI, tech filters

You Might Also Like

Bloomberg LP names Vlad Kliatchko CEO in top level overhaul – The Information By Reuters
Business

Bloomberg LP names Vlad Kliatchko CEO in top level overhaul – The Information By Reuters

August 21, 2023
Santaco seeks justice against City of Cape Town
Business

Santaco seeks justice against City of Cape Town

August 15, 2023
Concrete4Change raises £2.5M to permanently lock away CO2 in concrete 
Business

Concrete4Change raises £2.5M to permanently lock away CO2 in concrete 

January 28, 2024
Who will be the UK’s next top civil servant?
Business

Who will be the UK’s next top civil servant?

January 28, 2024

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?