Tribunal approves merger between firms active in private equity investment sector
The Tribunal has approved, without conditions, the proposed large merger whereby Kagiso Capital (RF) (Pty) Ltd (“Kagiso Capital”) will acquire EMSS Consulting (Pty) Ltd t/a Alphawave Holdings (“EMSS”). Post-merger, Kagiso Capital will exercise joint control over EMSS.
Kagiso Capital, an investment company, controls several firms in the education, healthcare, financial services and logistics sectors. It also manages investments. EMSS, a private equity investment company, invests in unlisted firms in the technology, electronics and software sectors.
In its assessment, Tribunal concurred with the Competition Commission (“the Commission”) that the transaction results in a horizontal overlap as the merger parties are active in the private equity investment market in South Africa. However, given the merger parties’ minimal market shares, the Commission was of the view that the proposed transaction will not result in any unilateral effects. The transaction did not raise any employment or any other public interest concerns.
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