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Johannesburg - Insurers Metropolitan Holdings [JSE:MET] and Momentum said on Friday they would appeal a regulatory order that would prevent them from cutting jobs for two years following a planned merger.
The Competition Tribunbal in October approved the deal between the two, which would create South Africa's third-largest insurer, on condition there would be no lay-offs for two years. However, the restriction did not apply to senior management of the merged entity MMI Holdings.
Metropolitan and Momentum, a unit of lender FirstRand [JSE:FSR], said in a statement they had submitted an appeal against the order.
Nicolaas Kruger, the CEO designate of MMI Holdings had said after the Tribunal's approval, that while employment-related conditions were not unexpected, the conditions were more rigid than anticipated.
The tribunal's ruling followed a hearing in which the insurers proposed to limit the number of merger- related job losses to 1 000 in the first three years after the merger.
They also offered to provide support, including core skills training, to affected unskilled and semi-skilled employees, outplacement support and counselling and to make an effort to redeploy affected employees within the merged entity.
All the suspensive conditions to the transaction between FirstRand, Momentum and Metropolitan were fulfilled this week, paving the way for the creation of the merged entity, MMI Holdings, the two companies said.
The Competition Tribunbal in October approved the deal between the two, which would create South Africa's third-largest insurer, on condition there would be no lay-offs for two years. However, the restriction did not apply to senior management of the merged entity MMI Holdings.
Metropolitan and Momentum, a unit of lender FirstRand [JSE:FSR], said in a statement they had submitted an appeal against the order.
Nicolaas Kruger, the CEO designate of MMI Holdings had said after the Tribunal's approval, that while employment-related conditions were not unexpected, the conditions were more rigid than anticipated.
The tribunal's ruling followed a hearing in which the insurers proposed to limit the number of merger- related job losses to 1 000 in the first three years after the merger.
They also offered to provide support, including core skills training, to affected unskilled and semi-skilled employees, outplacement support and counselling and to make an effort to redeploy affected employees within the merged entity.
All the suspensive conditions to the transaction between FirstRand, Momentum and Metropolitan were fulfilled this week, paving the way for the creation of the merged entity, MMI Holdings, the two companies said.
