Photo by: Creamer Media's Chanel de Bruyn
The Competition Commission has recommended that the Competition Tribunal unconditionally approve the proposed transaction whereby the Airports Company South Africa (ACSA) intends to acquire the aviation fuel supply assets of bp Southern Africa (bpSA) at the George and King Phalo airports, in the Western Cape and the Eastern Cape, respectively.
ACSA owns and operates the nine principal airports, including the George and King Phalo airports, in South Africa. Its mandate is to undertake the acquisition, establishment, maintenance, operation and control of any airport or part of any airport.
While ACSA does not engage in aviation fuel supply activities, including at the George and King Phalo airports, it is responsible for appointing aviation fuel supply operators at the airports.
The assets to be acquired include tanks, pipework, pumps, instrumentation, bunded areas, a gantry for loading refuellers and off-loading road bridgers, trucks, and an administration building and a storage facility. bpSA leased the relevant premises at these two airports from ACSA, where it installed all immovable assets and bought the movable assets required to operate the sites.
The commission found that the proposed transaction was unlikely to result in substantial prevention or lessening of competition in any relevant markets. The commission further found that the proposed transaction dih not raise any public interest concerns.