SAA merger set for competition green-light after Takatso shareholders agree divestment
Investors with interests related to South African operator Lift have agreed to divest their involvement in the Takatso consortium that is to take a controlling interest in South African Airways, clearing a path for competition authorities to approve the deal. South Africa’s Competition Commission says it is recommending the country’s Competition Tribunal clear Takatso Aviation’s merger with SAA, under which it will acquire a 51% stake in the airline from the government. Takatso first emerged as the potential investor in SAA during the airline's formal financial restructuring, a deal which paved the way for SAA to resume operations in September 2021. The competition body subsequently opened a probe into the merger after it received notification of the deal in June last year. The Takatso consortium is majority-led by asset management firm Harith General Partners. While Harith holds an investment in Lanseria airport, the competition body considered this is unlikely to have a significant impact because of investments to develop Lanseria airport and the availability of Johannesburg airport as an alternative. However it did identify issues relating to the consortium’s minority shareholders, Global Aviation and Syranix, which are involved in Lift. Aircraft lessor Global Aviation owns the airline while Syranix co-owns the Lift trademark and provides management service to airlines. "The Commission found that the merger is likely to result in a substantial lessening and prevention of competition in the domestic passenger airlines market,” says the regulator. "That is because the merger will likely facilitate the exchange of competitively-sensitive information between SAA and Lift, through Global Aviation and Syranix having shareholding and the ability to appoint directors to Takatso’s board of directors. Takatso will have access to SAA’s competitively sensitive information by virtue of its majority stake in SAA, pursuant to the proposed merger.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-05-15/star/saa-merger-set-for-competition-green-light-after-takatso-shareholders-agree-divestment
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SAA merger set for competition green-light after Takatso shareholders agree divestment
Investors with interests related to South African operator Lift have agreed to divest their involvement in the Takatso consortium that is to take a controlling interest in South African Airways, clearing a path for competition authorities to approve the deal. South Africa’s Competition Commission says it is recommending the country’s Competition Tribunal clear Takatso Aviation’s merger with SAA, under which it will acquire a 51% stake in the airline from the government. Takatso first emerged as the potential investor in SAA during the airline's formal financial restructuring, a deal which paved the way for SAA to resume operations in September 2021. The competition body subsequently opened a probe into the merger after it received notification of the deal in June last year. The Takatso consortium is majority-led by asset management firm Harith General Partners. While Harith holds an investment in Lanseria airport, the competition body considered this is unlikely to have a significant impact because of investments to develop Lanseria airport and the availability of Johannesburg airport as an alternative. However it did identify issues relating to the consortium’s minority shareholders, Global Aviation and Syranix, which are involved in Lift. Aircraft lessor Global Aviation owns the airline while Syranix co-owns the Lift trademark and provides management service to airlines. "The Commission found that the merger is likely to result in a substantial lessening and prevention of competition in the domestic passenger airlines market,” says the regulator. "That is because the merger will likely facilitate the exchange of competitively-sensitive information between SAA and Lift, through Global Aviation and Syranix having shareholding and the ability to appoint directors to Takatso’s board of directors. Takatso will have access to SAA’s competitively sensitive information by virtue of its majority stake in SAA, pursuant to the proposed merger.<br/>
