Tribunal to consider Shanduka-McDonalds SA deal
Today, 25 May 2011, the Competition Tribunal will hear three proposed mergers, including that of Shanduka Restaurants and McDonalds SA.
Known as Business Venture Investment, Shanduka Restaurants is ultimately controlled by Cyril Ramaphosa and Standard Bank among others, and it intends to buy the entire issued share capital of McDonalds.
Shanduka, in turn, owns Auram Restaurant.
In terms of the merger agreement, Auram will have the licence to own and operate the McDonalds branded restaurant system in SA for 20 years.
According to the merging parties, the acquisition presents an opportunity for the Shanduka group of companies to diversify into other growing sectors of the economy - in this case the fast food market.
The Competition Commission has recommended that the tribunal approve the transaction without conditions.
The tribunal will also hear the proposed merger between Investec Property and Edgardale Properties, which comprises office blocks and warehouse space in Gauteng, from Edcon.
The Competition Commission has assessed the merger and concluded that it would not raise any substantial competition concerns, and as such it recommended that the tribunal approve the merger without conditions.
The third deal that the tribunal will consider on Wednesday is the proposed acquisition of Davita Trading by Tiger Brands (TBS).
Davita is a manufacturer and distributor of powdered food stock and powdered soft drink products.
Tiger intends to use Davita's existing distribution footprint in SA and other African countries to expand the Tiger brand in Africa.
The commission considered this proposed merger and recommended that the tribunal approve the deal without conditions.
Source: I-Net Bridge
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