Some R67 billion of new investments flowed into the South African economy while safeguarding 236 000 jobs as a result of the Competition Commission's proactive approach and application of the public interest conditions over the past five years, said the Department of Trade, Industry and Competition Minister Ebrahim Patel on Thursday.
Giving the keynote address to delegates on the opening day of the 17th Annual Competition Law, Economics, and Policy Conference held at the Canvas Riversands Conference Centre, Fourways, Johannesburg, Patel said that approximately 22 000 jobs were created during the same period through the implementation of public interest conditions within the corporate sector.
Minister Patel further explained how R20 billion in salaries had been preserved as a direct result of these public interest interventions, while approximately 143 000 workers were now shareholders in their respective companies, thanks to the expansion of public interest criteria.
He said the conditions unlocked R19 billion in cumulative local procurement, with a focus on prioritising procurement from small and medium-sized enterprises (SMEs) and black-owned firms, as close to R1 billion was invested in skills development programs as part of merger commitments, benefiting employees and local communities.
Minister Patel reaffirmed the government’s commitment to using public interest conditions as a strategic tool for advancing economic transformation and promoting equitable growth in South Africa.
In her opening address, Commissioner Doris Tshepe hailed the Commission for continuing to make significant strides in competition law enforcement, particularly concerning inclusive economic growth, and highlighted how in the past financial year, the Commission recommended and/or imposed conditions in 68 mergers, resulting in a net saving of 2 243 jobs.
“We now take it as well understood that merger regulation has a crucial role to play in promoting inclusivity and worker participation,” Tshepe said.
She also announced the publication of draft revised public interest guidelines which now clarified that the competition and public interest assessment were equal in status and that a public interest assessment was mandatory in all merger transactions, whether or not they were likely to result in a substantial lessening or prevention of competition.
The Commission’s spokesman Siyabulela Makunga said the conference gathered under the theme “Towards Competitive Markets, Transformation and Deconcentration.” He said that the first day of the two-day conference cast the spotlight on inflation and competition enforcement in food and agro-processing. Panellists explored how competition enforcement may best engage the issues around food inflation. Other discussions centred around how to take merger control forward if it is to prevent undue concentration and contribute to deconcentration more effectively.
On Friday, delegates will delve into issues in the healthcare and energy sectors - both have seen significant developments in the last year. It would be healthcare, because of the passing of the National Health Insurance (NHI) Bill; and energy because of escalating blackouts accompanied by the growth of alternative energy markets in South Africa.
Commissioner Doris Tshepe and Minister Patel discussed the Commission’s growing application of public interest conditions and their impact on job preservation and creation. These conditions were said to be integral during the assessment of mergers and acquisitions.
Meanwhile, on Thursday the Competition Tribunal of South Africa unconditionally approved the proposed large merger wherein Dis-Chem Distribution (“Dis-Chem Distribution”) intended to acquire an immovable property known as Erf 137 Longmeadow Business Estate Extension 10 (the “target property”) from Capital Propfund.
Dis-Chem Distribution is wholly controlled and owned by Dis-Chem Pharmacies Limited (“Dis-Chem”), a public company listed on the Johannesburg Stock Exchange (“JSE”). Dis-Chem is a national chain of pharmacy stores located across South Africa. Dis-Chem’s activities in relation to the ownership of warehouses are of relevance to the proposed merger. The target property is located in Gauteng.
The Tribunal also conditionally approved the large merger whereby Kuehne and Nagel intended to acquire Morgan Cargo (Pty) Ltd, Morgan Cargo (KZN) (Pty) Ltd and Morgan Cargo Express (Pty) Ltd.
The Tribunal has approved the proposed transaction subject to conditions involving a moratorium on retrenchments of any employees in South Africa.
It also approved, without conditions, the proposed large merger wherein K2012150042 intended to acquire Old Mint in respect of its ownership and direct control of the target property, Old Mint Industrial Park as a going concern.
The acquiring group, through its subsidiaries, is involved in the financial and insurance markets internationally and in South Africa. Relevant to the proposed transaction are the industrial properties owned by the acquiring group.
Old Mint is a property-owning company that owns and operates the target property which comprises an industrial park located in Gauteng.
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