The Competition Tribunal has conditionally approved the controversial merger of Takatso Aviation and SAA, but was mum on its reasons. Picture: Henk Kruger, African News Agency (ANA)
The Competition Tribunal has conditionally approved the controversial merger of Takatso Aviation and SAA, but was mum on its reasons for doing so.
It said on Tuesday that it would issue its reasons in “due course”.
Takatso intends to acquire 51% of the issued share capital of state-owned company SAA from the government as represented by the National Department of Public Enterprises.
“The tribunal has approved the transaction subject to conditions involving a moratorium on retrenchments and divestiture of the shareholding by the minority shareholders in the Takatso consortium,” it said.
There have been numerous concerns aired by labour unions on job losses and fiscal transparency.
In making its decision, Business Report has previously reported that the tribunal had to hear submissions on the merger, including how divestiture of two subsidiaries will address the commission’s concerns on competition.
Takatso also had to reassure the tribunal that it would be able to manage SAA optimally without its subsidiaries.
Key to Takatso’s strategy are conditions regarding the government settling the balance of SAA’s historical debt.
The consortium also has to fund SAA’s operational costs to the tune of R3 billion over two to three years, to ensure the airline is agile in a competitive market, commercially viable and contributes to growth of the South African economy.
BUSINESS REPORT