Commission recommends approval of Chery's buyout of Nissan's South African manufacturing plant
The Competition Commission has recommended to the Competition Tribunal that it approve the proposed transaction whereby Chery South Africa (SA) intends to acquire the assets related to Nissan South Africa (SA) Manufacturing, with conditions.
Chery SA is controlled by Chery Overseas Industrial Investment, which is, in turn, controlled by Chery Automobile.
The acquiring group, which includes Chery Automobile and its related companies, specialises in the development, manufacture and global export of passenger and commercial vehicles. It produces sport-utility vehicles (SUVs), sedans and new-energy vehicles and operates in more than 80 countries.
In South Africa, the acquiring group imports and distributes Chery-branded passenger vehicles, provides automotive aftermarket services through Chery SA and sells certified pre-owned vehicles.
It does not manufacture vehicles locally and currently supplies the South African market exclusively through imports. Through the proposed transaction, the acquiring group intends to expand its South African operations by using Nissan's manufacturing plant, in Rosslyn, Gauteng, to manufacture certain Chery SUV models locally.
The manufacturing plant was used by Nissan SA to produce Nissan Navara bakkies. In January, Nissan SA announced that it would exit vehicle manufacturing in South Africa due to external factors affecting the plant’s utilisation and its future viability.
The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market.
Regarding public interest, the merging parties tendered conditions relating to employment and local supply.
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