Liftoff: Competition Tribunal greenlights SAA, Takatso deal
The Competition Tribunal has approved Takatso Consortium's proposed acquisition of 51% shareholding in South African Airways.
The approval is subject to conditions, including a moratorium on retrenchments and divestiture of the shareholding by the minority shareholders in the Takatso Consortium.
The decision sets Takatso and the Department of Public Enterprises on course to finally conclude the deal.
Public Enterprises Minister Pravin Gordhan says the decision is a significant step in the government’s efforts to rehabilitate the flag carrier.
"With this decision, the Competition Tribunal has affirmed our belief as government that a revitalized and a well-capitalised SAA presents the country with significant opportunities to boost economic connectivity and strategic reach that should benefit our economy and our people for years to come.
"I am confident that the repositioning of SAA sets a very good example of what can be achieved when the right financial and operational framework is given to state-owned companies so they can fulfil their mandate to advance our economic transformation and development as a country,” said Gordhan.
Takatso Aviation spokesperson Thulasizwe Simelane said the merger approval brings much-needed price and service competition to the sector.
“Competition Tribunal approval of the transaction reaffirms our belief that the airline industry in this country can do with more seat capacity and related price and service competition, especially in light of the current mismatch between demand and supply that has been created by the significantly reduced scale of SAA operations in recent years, as well as the demise and discontinuation of operations of several other airlines.”
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