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The Competition Commission of South Africa (CCSA) held its ordinary meeting on Friday, 25 November 2022, to review and take decisions on matters brought before the Commission by members of the public and corporate applicants, in terms of the Competition Act (89 of 1998) as amended. These matters include but are not limited to complaints, mergers, and acquisitions.

MERGERS AND ACQUISITIONS

1.1 Daimler Truck Holding AG (“DT Holding AG”)/ Sandown Motor Holdings (“Sandown Motor”)

The Commission has recommended that the Competition Tribunal approve the proposed transaction whereby DT Holding AG intends to acquire Sandown Motor, without conditions.

The primary acquiring firm is DT Holding AG, a German company listed on the Frankfurt Stock Exchange. DT Holding AG is currently a wholly owned subsidiary of Daimler AG. DT Holding AG controls Daimler Truck Southern Africa Limited (“DTSA”). Daimler AG is the parent company of Mercedes-Benz AG (“Mercedes-Benz”), Daimler Truck AG and Daimler Mobility AG (“Daimler Mobility”). DT Holding AG and all firms controlled by it shall be referred to as the “Acquiring Group”.

The Acquiring Group is focused on the manufacturing and sale of trucks and buses.

The primary target business comprises part of the commercial vans business of Sandown Motor Holdings (Pty) Ltd (“Target Business”). Sandown Motor is a wholly owned subsidiary of Mercedes-Benz South Africa Limited (“Mercedes-Benz SA”). Mercedes-Benz SA is in turn a wholly owned subsidiary of Mercedes-Benz AG which is ultimately controlled by the Mercedes-Benz Group.

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any substantial public interest concerns.

1.2 Pick n Pay Retailers (Pty) Ltd (“PnP Retailers”)/ Pick n Pay Douglasdale Family Supermarket & Liquor Store (“PnP Douglasdale”)

The Commission has recommended that the Tribunal approve the proposed transaction whereby PnP Retailers intends to acquire PnP Douglasdale, without conditions.

The primary acquiring firm is PnP Retailers. PnP Retailers is a wholly owned subsidiary of Pick n Pay Stores Limited (“Pick n Pay”).

PnP Retailers is a multi-format, multi-channel retailer within South Africa. PnP Retailers operates supermarkets in various formats that are focused on the supply of fast-moving consumer goods (FMCG). These FMCGs include an array of goods such as food, groceries, clothing, health and beauty products, general merchandise, and liquor.

The primary target firm is PnP Douglasdale. PnP Douglasdale is currently operated by Cherokee Trading Post 24 (Pty) Ltd (“Cherokee Trading” or the “Seller”).

PnP Douglasdale conducts its business as a supermarket and liquor franchise store, forming part of the broader PnP multi-format, multi-channel retail offering to consumers in South Africa. PnP Douglasdale offers goods and services which are identical to those offered by Pick n Pay in its other Pick n Pay-branded franchise and corporate supermarket stores.

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.

1.3 Silver Cloud Trading 1 (Pty) Ltd (“Silver Cloud”)/ The Avenues Shopping Centre (“The Avenues”) and Palm Springs Shopping Centre (“Palm Springs”) (“Target Properties”)/ Growthpoint Properties Limited (“Growthpoint”)

The Commission has approved the proposed transaction whereby Silver Cloud intends to acquire the target properties from Growthpoint, without conditions.

The primary acquiring firm is Silver Cloud. Silver Cloud is controlled by Black Falcon Properties (Pty) Ltd (“Black Falcon”) and Levitt Investments (Pty) Ltd (“Levitt Investments”). Black Falcon and Levitt Investments are controlled by trusts. Silver Cloud and all the firms, directly and indirectly, controlling it, will hereinafter be collectively referred to as the “Acquiring Group”.

The Acquiring Group is engaged in acquisitions and disposals of properties and holds various retail properties in other regions in the country.

The primary target firm is Growthpoint in respect of the letting enterprises known as The Avenues and Palm Springs. The properties being disposed of by Growthpoint will collectively be referred to as the “Target Properties”.  

Growthpoint invests in retail property situated in major urban centres. For the purposes of the current transaction, the following two retail properties are relevant: (i) The Avenues comprising 34,740 m2 of rentable retail space, situated at 7th Street, Springs, Gauteng, and (ii) Palm Springs comprising 11,164 m2 of rentable retail space, situated at the corner of 4th and 7th Street, Springs, Gauteng.

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.

1.4 HeyCarter Dealerships Proprietary Limited (“HeyCarter Dealerships”)/ Hoffeldt Motor Holdings Proprietary Limited

The Commission has unconditionally approved the proposed merger whereby HeyCarter Dealerships intends to acquire various motor vehicle dealerships from a single individual.

The primary acquiring firm is HeyCarter Dealerships. HeyCarter Dealerships is ultimately controlled by PSG Group Limited (“PSG”). PSG and all the firms it controls shall be referred to as the “Acquiring Group”.

The activities of the Acquiring Group that are relevant for purposes of this assessment are the sale of new and used passenger vehicles (“PVs”) and light commercial vehicles (“LCVs”) including the provision of after-sales maintenance, parts, and accessories. The Acquiring Group’s activities are conducted from Suzuki, Renault, and Mitsubishi dealerships in Johannesburg and a Renault dealership in Springfield, Durban.

The primary target firms are motor vehicle dealership businesses operated from Bronkhorstspruit in Gauteng, that sell new and used Renault, Mitsubishi, Volkswagen, Ford, Haval, and Nissan PVs and LCVs and provide service, maintenance, parts, and accessories.

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.

1.5 Lucky Star Ltd, trading as Lucky Star Operations (“Lucky Star”)/ Supreme Processing (Pty) Ltd (“Supreme”)

The Commission has approved the proposed transaction whereby Lucky Star intends to acquire Supreme, with conditions.

The primary acquiring firm is Lucky Star. Lucky Star is a wholly owned subsidiary of the Oceana Group Limited (“Oceana”), a publicly listed company trading on the Johannesburg Stock Exchange and the Namibian Stock Exchange. Oceana controls numerous firms. Lucky Star has controlling interests in two unincorporated joint ventures which hold fishing vessels.

Lucky Star forms part of the pelagic fish business of Oceana and its primary product is canned fish consisting of pilchards, tuna, sardine, and mackerel, all of which are marketed under the Lucky Star brand.

The primary target firms are the canned meat assets of Supreme which were operated by Supreme at its Polokwane plant as well as the Prima brand which is owned by Supreme. Supreme is a wholly owned subsidiary of Country Bird Holdings (Pty) Ltd (“CBH”). CBH is controlled by Synapp International Limited. CBH controls numerous firms and Supreme does not control any single entity.

Lucky Star has undertaken, as a condition attached to the merger, to create 30 full-time employment opportunities as a result of the proposed transaction.

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.

Issued by The Competition Commission of South Africa