Cape Town - The Competition Tribunal yesterday conditionally approved the merger between Seven Eleven and Metro Cash and Carry (Metcash).
In terms of the tribunal ruling, Metcash should, within six months of the approval of the deal, offer new franchise agreements on the same terms to all Seven Eleven and Friendly Shoppe franchisees.
Metcash should also inform all its present and newly acquired franchisees of the conditions attached to the merger.
In May Metcash announced that it had bought the Seven Eleven franchise from George Hadjidakis.
A month earlier the Seven Eleven Corporation and Seven Eleven Africa were placed in provisional liquidation in the Cape high court after Nedbank had called up its overdraft.
The two entities between them controlled the 100 company-owned stores as well as approximately 170 franchised stores which employed 1 500 people.
As a result the companies had no other option but to apply for voluntary provisional liquidation a day later.
In terms of the deal struck with Metcash, Hadjidakis was given a loan of R90 million to pay creditors' claims in full and an additional R6.75 million to pay the provisional liquidators' fees.
The structure of the Metcash deal was contingent on two suspensive conditions: the discharge of the provisional liquidation orders and approval by the Competition Commission.
At the time Hadjidakis expressed his gratitude to Metcash for the confidence it had shown in the brand and said had it not been for the company there would have been a hostile takeover of the business. Staff, creditors and suppliers would have been at risk.
Metcash, the biggest grocery wholesaler in South Africa and Australia, reports results for the six months to September today.
It is expected to show profit rising to R201 million, or 11c a share, from R189 million, or 10.72c, according to the median estimate of three analysts surveyed by Bloomberg News.
Metcash's share price closed unchanged at R2.23 at the JSE Securities Exchange yesterday.