Merger Alert: Outcome of mergers decided by the Tribunal - 6 September 2024
The following Merger Alert is for information purposes only and is not binding on the Competition Tribunal or any member of the Tribunal
| Type of matter | Parties involved | Tribunal Decision |
| Large merger | Dis-Chem Distribution (Pty) Ltd And Columbia Falls Properties 7 (Pty) Ltd | Approved without conditions |
| Large merger | Towerco Bidco (Pty) Ltd And Swiftnet Soc Ltd
| Approved with conditions |
Dis-Chem Distribution (Pty) Ltd and Columbia Falls Properties 7 (Pty) Ltd
The Competition Tribunal (“Tribunal”) has unconditionally approved the proposed merger whereby Dis-Chem Distribution (Pty) Ltd (“Dis-Chem Distribution”) intends to acquire Columbia Falls Properties 7 (Pty) Ltd (“Columbia Falls”). Following the implementation of the proposed transaction, Columbia Falls will be solely controlled by Dis-Chem Distribution.
Dis-Chem Distribution is a wholly owned subsidiary of Dis-Chem Pharmacies Limited (“Dis-Chem”). The acquiring group (Dis-Chem and all its subsidiaries) is active in the pharmaceutical supply chain ranging from wholesale distribution to the operation of retail pharmacies. Products are warehoused and delivered to customers such as Dis-Chem retail pharmacies downstream. This distribution activity is conducted in-house using warehouses / distribution centres owned or leased by Dis-Chem.
Columbia Falls owns the warehouse in Midrand (the “target warehouse”), which is currently leased solely to the acquiring group. The acquiring group uses the target warehouse as a distribution centre for its pharmaceutical and front shop products, as well as for its head office.
Towerco Bidco (Pty) Ltd And Swiftnet Soc Ltd
The Tribunal has approved, subject to procurement and access related conditions, the proposed merger whereby TowerCo Bidco (Pty) Ltd (“TowerCo”) intends to acquire Swiftnet Soc Ltd (“Swiftnet”). Post-merger, TowerCo will have sole control of Swiftnet.
TowerCo is a firm established for the purposes of the proposed transaction. It is jointly controlled by the Actis Ohio Fund and Royal Bafokeng Infrastructure Investments (Pty) Ltd. The Actis Group is a global investor in energy infrastructure, long life infrastructure, digital infrastructure, real estate and private equity. In South Africa, the Actis Group is invested in the food retail, education, fibre and internet services sectors. The Royal Bafokeng Group is primarily an investment holding company with minority interests held in various investments across diverse sectors and geographies. These include infrastructure, property, financial services, telecoms, pharmaceuticals, resources and industrials sectors.
Swiftnet is wholly owned and controlled by Telkom SA SOC Limited, a state-owned company. It has electronic communication network tower sites in South Africa. Its core business includes leasing space on its owned mast and tower related infrastructure to customers, enabling such customers to deliver connectivity to their respective subscribers or customers and/or operate wireless networks. Swiftnet also provides wireless in-building solutions, which allows its customers to provide mobile network connectivity within shopping centres, buildings and other public infrastructure and offices across the country.
Issued by:
Gillian de Gouveia, Communications Manager
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib
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