The Competition Tribunal has unconditionally approved a deal whereby Imperial Logistics, through its wholly-owned subsidiary, Imperial Capital, will acquire Lift Logistics (J&J Group) and its subsidiary, Greendoor Group.
Post-acquisition, Imperial will control J&J Group and Greendoor.
The Tribunal has concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, it raises no public interest concerns.
Imperial is not controlled by any single firm or individual as its shares are widely held, says the Tribunal.
Imperial Capital is an investment holding company that controls several operational subsidiaries across the Southern Africa Development Community (SADC) region.
The acquiring group’s market access activities enable clients to reach their customers and consumers through sourcing sales, distribution and marketing.
Through its logistics operations it manages the movement of goods on behalf of clients between specified locations.
J&J Group is a Mauritian firm and Greendoor is a South African firm.
J&J Group provides transport to port agency services and warehousing, specialising in international transportation between Mozambique, Zimbabwe, Zambia, Malawi, South Africa and the eastern part of the Democratic Republic of the Congo (DRC).
In South Africa, the target group’s only subsidiary is Greendoor, which transports cargo between Durban and Richards Bay, in South Africa, and Zimbabwe, Zambia and the DRC.
The Tribunal says it agrees with the Competition Commission’s conclusion that the merger is unlikely to lead to a substantial prevention or lessening of competition in any relevant market.
The Commission found that while the merger parties both offer cross-border transportation services, they have different focus areas.
The acquiring group focuses on logistics services in the automotive, chemical, healthcare, fast moving consumer goods and fuel sectors, while the target group focuses on transporting mineral ores between South Africa and SADC countries.
“The merger raises no public interest concerns. The merger will have a positive impact on the promotion of the spread of ownership by historically disadvantaged persons (HPDs) through the acquiring group’s HDP shareholding,” says the Tribunal.