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The Tribunal has conditionally approved the large merger involving the acquisition of Emerald Hotel Resort & Casino South Africa (“Emerald”) by K2021134577 (South Africa) (Pty) Ltd (“Newco”). Following the implementation of the proposed transaction, Emerald will be controlled by Newco.
 
The Tribunal has imposed employment, local procurement and investment related conditions on the proposed merger. The conditions include the following, among others:

The merger parties will not retrench any Emerald employees as a result of the merger for a period of 24 months following the merger approval date;

If any positions become available within the abovementioned 24-month period, Newco will consider employing former Emerald employees who had been retrenched in 2021, provided their skills are similar to or suitable for the relevant positions and provided mutually agreeable employment terms are agreed to;

For a period of two years from the merger implementation date, the merged business will use reasonable endeavours to continue to procure specific goods and services from local suppliers located in Emerald’s surrounding area, provided the goods and services are available and of sufficient quality; and that it is commercially viable to do so and that the goods and services can be sourced on competitive terms;

Newco commits to investing in relation to Emerald’s business operations for a period of five years from the merger’s implementation date; and

Newco commits, for a period of five years from the merger implementation date, not to relocate Emerald’s casino license from the current site on which its operations are located to another site within the Gauteng province.   

 The merger parties
 
The primary acquiring firm is Newco, a newly registered South African private company. The shareholders of Newco comprise Tsogo Sun Gaming and other shareholders. Tsogo Sun operates casino and entertainment destinations offering a wide variety of gaming, dining and entertainment facilities in South Africa.
 
Emerald offers casino, short-term hotel accommodation, conferencing and banqueting facilities and leisure activities. Emerald is situated in Vanderbijlpark, Gauteng. 

Issued by Gillian de Gouveia, Communications Officer on behalf of the Competition Tribunal of South Africa