Johannesburg - The Competition Tribunal said it
would on Tuesday, May 15 hear two mergers and a settlement agreement.
The first merger is between Kagiso and Juta&Co - in this
transaction Kagiso Media intends to purchase a controlling share in Juta
and Company.
Juta&Co is active in academic and professional
development, adult learning, retail academics as well as legal and
educational publications.
Kagiso Media provides entertainment and broadcasting services including operating radio stations in SA.
The Competition Commission assessed this transaction and
concluded that it was unlikely to raise any significant competition
concerns.
The commission therefore recommended that the tribunal approve the merger without conditions.
The second merger pertains to Group Five and Jayendra who are looking to acquire Lesedi.
Group Five is a multidisciplinary construction company whose
client base is engaged in resources, energy and infrastructure delivery.
Jay and Jayendra is an investment holding company with diversified interests in various sectors.
Lesedi Nuclear Services, which is the target in this deal,
provides maintenance, engineering and installation services to nuclear
plants in SA. Lesedi has recently also entered the non-nuclear space
where it provides specialised engineering services to the construction
industry.
Both Jayendra and Group Five intend to purchase shares in
Lesedi, which will enable them to jointly control Lesedi alongside a
firm named Framex.
The commission evaluated the merger and concluded that it was
unlikely to raise substantial competition concerns and recommended that
the deal be approved without conditions.
Also on Tuesday, the tribunal will hear a settlement agreement
between the commission and Singapore Airlines in which Singapore
Airlines agrees to pay a penalty of about R25 million.
This amount represents 7.56% of Singapore Airlines passenger turnover out of SA during 2009/2010.
This settlement follows an investigation that the commission initiated in January 2008.
The commission found that local representatives of Singapore
Airlines had, on occasions between 2004 and February 2006, discussed air
fare rates in SA with Cathay Pacific, South African Airways and
Malaysian Airlines.
Local representatives of Singapore Airlines relied on the
content of these discussions, among other things, to determine fares for
flights out of SA to South East Asia, Hong Kong and China.
In the settlement agreement Singapore Airlines admitted to
contravening the Competition Act and undertook to co-operate with the
commission in its investigation of this matter.
After hearing the settlement the tribunal may confirm the
agreement as an order, refuse to confirm it or require changes to the
agreement.