The Competition Tribunal of South Africa has approved the proposed merger between South African Airways (SAA) and Takatso Aviation Proprietary Limited, with divestiture and employment conditions.
“I am confident that the repositioning of SAA sets a very good example of what can be achieved when the right financial and operational framework is given to state-owned companies, so they can fulfill their mandate to advance our economic transformation and development as a country.”
The minister added that the Tribunal’s ratification highlights the extent of the work done to ensure the transaction’s success. After years of struggling to make a profit, SAA was at risk of being liquidated if this semi-privatization deal was unsuccessful. Since exiting administration two years ago, the carrier has made significant progress on its path to recovery.
Following the Tribunal’s decision, Takatso Aviation will acquire 51% of the issued share capital of SAA from the South African government, while the DPE retains the remaining 49% shareholding. Takatso Aviation was incorporated for this merger, with Harith General as the majority shareholder. The minority shareholders are Global Aviation t/a Global Airways and Syranix, both involved in South Africa’s low-cost carrier, LIFT, which is also based at Johannesburg OR Tambo Global Airways owns the LCC, while Syranix co-owns the LIFT trademark.
When the Commission recommended the merger to the Tribunal, it cited the possible implications of the deal on competition in the domestic passenger airline sector. The transaction’s approval is now subject to the condition of the complete divestment of Global Aviation and Syranix from Takatso prior to implementation. The minority shareholders agreed to withdraw from the transaction last month, but Global Airways said that it cannot comment on the matter at this time.All rights reserved.
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