Competition Commission recommends approval of Barloworld's R23bn acquisition

THE Competition Commission has recommended that the Competition Tribunal approve the proposed R23 billion acquisition of Barloworld, subject to certain public interest conditions.

- SIPHELELE DLUDLA

This comes after the Public Investment Corporation (PIC), Barloworld's biggest shareholder with 21.93%, in April accepted the Standby Offer for the acquisition of all of Barloworld's ordinary shares for a cash consideration of R120 per share, with additional conditions, by the recently formed special purpose consortium, Newco.

Newco on Monday said the recommended conditions principally relate to its commitment as stated in the PIC undertaking announcement to implement a 13.5% broad-based black economic empowerment transaction in Barloworld after the delisting of Barloworld from the JSE and A2X.

Newco comprises Entsha Proprietary and Gulf Falcon Holding, a wholly-owned subsidiary of Zahid Group.

The Commission's recommendation will now be considered by the Tribunal for approval.

In addition to approval by the Tribunal, the Newco said the parties were continuing to work towards the fulfilment of the remaining conditions required for the transaction to become unconditional, including competition approvals from other jurisdictions.

Shareholders will be advised in due course as to material developments in this regard.