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Johannesburg - South Africa will no longer require Japan's Kansai Paint to sell part of its local unit Freeworld Coatings on competition grounds, giving the Osaka-based company a boost in its Africa expansion.
Kansai, which owns more than 90% of Freeworld and is currently in the process of taking it private, said in a statement on Thursday that it would no longer be forced to sell Freeworld's automotive paint business.
“Freeworld will no longer be required to divest of its automotive coatings business or establish ... original equipment manufacturer automotive coatings facilities in South Africa,” Kansai said.
The competition regulator in April approved Kansai's takeover bid for Freeworld, stipulating that the Japanese company sell the auto paint unit, build a new plant and not cut jobs for the next three years.
Kansai then appealed that divestment condition.
South Africa has come under fire from some investors for its handling of both the Kansai deal and Walmart’s $2.4bn bid for control of local retailer Massmart.
Walmart finalised its purchase of 51% in Massmart earlier this year but the government is still appealing the deal, in the hopes of overturning it or imposing stricter conditions.
Kansai, which owns more than 90% of Freeworld and is currently in the process of taking it private, said in a statement on Thursday that it would no longer be forced to sell Freeworld's automotive paint business.
“Freeworld will no longer be required to divest of its automotive coatings business or establish ... original equipment manufacturer automotive coatings facilities in South Africa,” Kansai said.
The competition regulator in April approved Kansai's takeover bid for Freeworld, stipulating that the Japanese company sell the auto paint unit, build a new plant and not cut jobs for the next three years.
Kansai then appealed that divestment condition.
South Africa has come under fire from some investors for its handling of both the Kansai deal and Walmart’s $2.4bn bid for control of local retailer Massmart.
Walmart finalised its purchase of 51% in Massmart earlier this year but the government is still appealing the deal, in the hopes of overturning it or imposing stricter conditions.
