Construction firm Stefanutti Stocks has received Competition Tribunal approval, in a record four hours, for the acquisition of one of beleaguered First Strut’s subsidiaries.
Engineering firm Energotec would be merged into Stefanutti, saving over 660 jobs and ensuring the “continuous supply of fuel” in Gauteng.
The Competition Tribunal said that Sasol, the only customer affected by the transaction, had indicated its support for the deal, as Energotec was said to be key for the smooth execution of the scheduled September shut down of one of Sasol’s key fuel plants.
A Sasol spokesperson said the company would respond shortly.
The construction company believed that merging Energotec into its operations would enable it to offer a more comprehensive service to its clients, as the civil engineering firm operated primarily within the petrochemicals industry.
The tribunal said in a statement that it approved the deal on the basis that Energotec – and First Strut – were in a “precarious financial condition” and currently under liquidation.
In July, First Strut, which has been trading as First Tech Group, applied for provisional liquidation of its subsidiaries after failing to secure further funding to pull the group through business rescue proceedings.
Stefanutti was ordered to limit the retrenchments resulting from the merger to 16 employees over the next two years.