The Competition Tribunal has postponed a hearing into the merger of electrical equipment manufacturer Actom and electrical service, repair and import company Savcio to next month, to allow Transnet Rail Engineering (TRE) time to submit its view on the deal.

Transnet is particularly concerned about the possible increase of the price of commutators in the market as a result of the two companies merging.

Actom is one of the largest manufacturers of commutators in South Africa, while Savcio imports the more mainstream classes of commutator packs and assembles these locally.

The Competition Commission recommended the Tribunal approve the deal, but wants conditions to be imposed. It has suggested that, following the merger, Actom continue supplying TRE with commutators on terms similar to the current arrangements for the next five years, with the price adjusted for consumer price inflation.

Other conditions put forward by the commission included the removal of a common shareholding by Kagiso Tiso Holdings in both Actom and Acton Repair Services – a competitor of Savcio. However, the commission had stated that the merging parties have already removed common directors between the firms, as well as confirmed no common directors would be appointed in the future.

The tribunal hearing has been postponed to February 4.

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