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Telefonatiebolaget LM Ericsson (Ericsson) v The antenna and filter products business of Kathrein SE (Kathrein SE)
 

The Commission has approved, the proposed merger, with conditions, whereby Ericsson intends to acquire Kathrein SE.

Globally, Ericsson is a supplier of network equipment and software, as well as services for network and business operations. Ericsson supplies a range of products and services including network solutions supporting Radio Access Networks, digital services, including cloud and network functions virtualisation infrastructure, managed services to service providers, internet of things platforms, and media solutions.

The antenna and filter products business (the Target Business) is controlled by Kathrein SE. The Target Business acts globally and offers its products exclusively under the brand Kathrein worldwide. These products include passive antennas, filter products and accessories for the build-up and/or optimisation of telecommunications networks. In South Africa, the products that the Target Business offers include passive antennas and various filter products, including combiners, amplifiers and components. In South Africa, the Target Business sells to a local Sales Partner and all sales to South African customers are indirect and go through this Sales Partner.

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant market. However, the Commission found that the proposed transaction is likely to raise substantial public interest concern with regard to its effect on the ability of small business or firms controlled by historically disadvantaged persons to become competitive. This concern arises from the fact that the merged entity will prematurely terminate a distribution agreement with a South African Sales Partner currently utilised by the Target Business. The Commission and the merging parties agreed that, following the merger, the merged entity will not terminate the distribution agreement, instead they will let it run for its remaining duration. The merging parties also agreed to remove all restrictions imposed on the said Sales Partner.

K2019135490 (South Africa) (Pty) Ltd (New Holdco) v Tutuka Software (Pty) Ltd (Tutuka)
 

The Commission has approved, the proposed merger, without conditions, whereby New Holdco intends to acquire Tutuka.
 
New Holdco is a newly established private company incorporated in accordance with the laws of the Republic of South Africa. New Holdco is ultimately controlled by Apis Partners Limited Liability Partnership (Apis Group).
 
Apis Group is a fund manager focusing on investing in financial services firms that require capital to fund their own expanding operations in Africa, the India subcontinent and South-East Asia.
 
Tutuka issues and processes both Visa & Mastercard branded prepaid cards (e.g. gift cards, multicurrency travel cards, payroll cards and general-purpose reloadable cards) on behalf of its clients (i.e. banks, retailers, telecommunication and financial companies).
 
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant market. The Commission further found that the proposed transaction does not raise any employment or other public interest concerns.
 

Gemgrow Properties Limited (Gemgrow) v Arrowhead Properties Limited (Arrowhead)
 
The Commission has recommended to the Competition Tribunal (Tribunal) that the proposed merger, whereby Gemgrow intends to acquire Arrowhead, be approved, without conditions.
 
Gemgrow is a public company incorporated in accordance with the laws of South Africa. Gemgrow is a Real Estate Investment Trust (REIT) listed on the Johannesburg Securities Exchange (JSE). Gemgrow Group owns a diversified portfolio of office, retail and industrial properties throughout South Africa.
 
Arrowhead is a public company incorporated in accordance with the laws of the Republic of South Africa. Arrowhead is a REIT listed on the JSE and is not controlled by any firm. Arrowhead owns several office, retail and industrial properties throughout South Africa.
 
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in the relevant markets. The Commission further found that the proposed transaction does not raise any employment or other public interest concerns.
 
 
Premier Hotels & Resorts (Pty) Ltd and NV Properties (Pty) Ltd (collectively, the “Acquiring Group”) v Faircity Hotels (Pty) Ltd (Faircity), Rental Enterprise and Bustque 376 (Pty) Ltd (the “Target Firms”)
 
The Commission has approved, the proposed merger, without conditions, whereby the Acquiring Group intends to acquire the Target Firms.
 
The Acquiring Group operates and manages the “Premier” branded hotels across South Africa. Further through, NV Properties, the Acquiring Group is involved in property development.
 
The Target Firms are comprised of the + Falstaff Faircity Hotel is located in Morningside, Sandton; the Quartermain Hotel in Morningside, Sandton; the Roodevalley Hotel in Kameeldrift-East, and Keivits hotels in Pretoria. The Target firms are also comprised of the management of the Grosvenor Gardens, Junction Apartments, the Keivits and Mapungubwe hotels.
 
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant market. The Commission further found that the proposed transaction does not raise any employment or other public interest concerns.
 
 
Fairvest Property Holdings Limited (Fairvest) v Investec Property Fund Limited (Investec Property Fund) in respect of the property letting enterprise known as Nonkqubela Shopping Centre (Nonkqubela Shopping Centre)
 

The Commission has approved, the proposed merger, without conditions, whereby Fairvest intends to acquire Nonkqubela Shopping Centre from Investec Property Fund.
 
Fairvest is a property investment holding company listed in the REIT sector of the JSE as a Retail REIT. The properties owned by Fairvest comprise of retail and office space properties located across South Africa.
 
Nonkqubela Shopping Centre is located at no. 1 Sulani Drive, Khayelitsha, Western Cape.
 
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant market. The Commission further found that the proposed transaction does not raise any employment or  other public interest concerns.
 
 
Sofirox (Pty) Ltd (Sofirox) v Howec Metals (1964) (Pty) Ltd (Howec Metals) in respect of the property letting enterprise known as Hobart Grove Shopping Centre (Target Property)
 

The Commission has approved, the proposed merger, without conditions, whereby Sofirox intends to acquire Target Property from Howec Metals.
 
Sofirox is a property investment and development company with further interests in the food and restaurant sectors.
 
The Target Property is a neighborhood retail centre, located at 11 Eccleston Crescent, Bryanston, Gauteng.
 
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant market. The Commission further found that the proposed transaction does not raise any employment or other public interest concerns.

 
Issued by The Competition Commission of South Africa