The Competition Tribunal has conditionally approved the transaction, in terms of which holding company Barnes Southern Palace plans to acquire Scaw South Africa from the Industrial Development Corporation (IDC).
To address information sharing concerns, the transaction was approved subject to a condition that, for as long as the IDC is able to appoint directors to the respective boards of CWI and Scaw, the IDC will ensure that its representatives on the board of Scaw are not the same persons serving, nominated and/or appointed on any board or management committees or subcommittees of CWI.
Further, the nominees appointed by the IDC to the board of Scaw may not have served on the board of directors and/or management committees or subcommittees of CWI for a period of one year prior to being nominated to the board of Scaw.
Employment conditions have also been put in place, as well as conditions to ensure the merged entity will supply small steel mills with direct reduced iron which will enable them to produce better quality steel.
The merger was heard by the Tribunal on February 16, with the order issued on February 19.