Merger Alert: Outcome of mergers decided by the Tribunal - 3 September 2024

The Competition Tribunal (“Tribunal”) has unconditionally approved the proposed merger whereby Bidvest Automotive Holdings (Pty) Ltd (“BidAuto”) intends to acquire Serco Industries (Pty) Ltd, Serco Solutions (Pty) Ltd, Serco Cape (Pty) Ltd, Serco Eastern Cape (Pty) Ltd, and Serco KZN CC (collectively, “the Serco Group”). Following the implementation of the proposed merger, BidAuto will control the Serco Group.

BidAuto is ultimately controlled by Bidvest Group Ltd ("Bidvest”). Bidvest Group (all the firms controlled by Bidvest) is a conglomerate involved in the provision of products and services across various economic sectors such as logistics, aviation, financial, catering services, and hospitality and automotive retailing, among others. Bidvest Group’s chassis procurement services and its logistics business is of relevance to the proposed transaction.

The Serco Group specialises in the manufacture, sale, rental and repair of new light and heavy duty insulated and dry freight truck bodies and trailers. Its customers include logistics firms, grocery retailers and other firms involved in the transportation of fast-moving consumer goods. In addition, it sells pre-owned truck bodies and trailers, spares and accessories and mobile billboards. It also conducts vehicle renting, repair and branding services.

The Tribunal has unconditionally approved the merger whereby Lesaka Technologies (Pty) Ltd (“Lesaka”) intends to acquire Adumo (RF) (Pty) Ltd (“Adumo”). Post-merger, Lesaka will exercise sole control over Adumo.

Lesaka is controlled by Lesaka Technologies Inc. (“Lesaka Tech”). The acquiring group (all firms directly and indirectly controlled by Lesaka Tech in South Africa) is active in the provision of payment solutions and related services. Through its consumer division, it provides financial services directly to unbanked customers through a combination of online and brick-and-mortar distribution platforms. The products and services include transactional banking, short-term loans, digital wallets and cash solutions, among others. Through its merchant division it provides, among others: financial switching services; value-added services (including bill payments and prepaid electricity and airtime); cash management and payment solutions; and unsecured short-term business loans to merchants.

Adumo is active in the provision of payment solutions and related products that operate independent payments and merchant-acquiring platforms. Its products and services include embedded payments, payment integrations, reconciliations, funding (merchant advances), customer engagement card issuing, program management and analytics.

The Tribunal has unconditionally approved the merger whereby Mineworkers Investment Company Holdings (Pty) Ltd (“MIC”) and NPE 2 (Pty) Ltd (“NPE 2”) (collectively referred to as the “Consortium”) intends to acquire Tropic Plastic and Packaging Industry (Pty) Ltd (“Tropic”). Post-merger, Tropic will be controlled by the Consortium.

MIC is an investment holding company. Its portfolio includes investments in sectors which include advertising, broadcasting and telecoms, motor retail and car hire, financial services and others. In addition, the Consortium (through NPE 2) is involved in financial services including banking, insurance, asset management and private equity.

Tropic is an independent and established market player in the provision of flexible packaging within Southern Africa. Its production processes include extrusion, printing, bag making, slitting and lamination.

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