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Competition Tribunal finally approves Burger King sale with revised conditions

21 September 2021 7:57 PM
Tags:
The Money Show
Bruce Whitfield
Competition Commission
Grand Parade Investments
Burger King
Competition Tribunal
Burger King SA
Burger King sale
Emerging Capital Partners Africa Fund IV
Emerging Capital Partners
Bakhe Majenge
BEE credentials

One condition is that Burger King SA opens 60 new outlets. The Money Show interviews the Competition Commission's Bakhe Majenge.
© Teerawut Masawat/123rf.com

The Competition Tribunal has finally approved Grand Parade Investments' proposed sale of Burger King .

Grand Parade announced in August that the sale of Burger King SA was back on the cards, after it had been blocked in June.

The company said the parties concerned had reached agreement with the Competition Commission on a revised set of conditions for the proposed deal.

RELATED: New conditions make it likely regulator will finally approve sale of Burger King

RELATED: Competition watchdog blocks sale of Burger King SA on BEE grounds

The Competition Commission is very pleased with the outcome achieved on the basis of the revised conditions says the Commission's Principal Legal Counsel, Bakhe Majenge.

The main issue that arose here... is that this [original] merger would have resulted in a situation where the BEE shareholding in Burger King moved from a position of about 68% to virtually nil BEE shareholding.

Bakhe Majenge, Principal Legal Counsel - Competition Commission

That raised a very significant concern from a BEE perspective, hence the need for an intervention by the competition authorities to at least secure an alternative commitment from the merging parties which would ensure the empowerment of historically disadvantaged individuals.

Bakhe Majenge, Principal Legal Counsel - Competition Commission

Majenge describes the revised conditions as a package of commitments, which include procurement and investment commitments.

It includes a commitment to expand the current number of outlets from about 90 to 150 outlets, which speaks to the investment commitment

Bakhe Majenge, Principal Legal Counsel - Competition Commission

[There are] some procurement commitments to empower local suppliers and to create value chain opportunities...

Bakhe Majenge, Principal Legal Counsel - Competition Commission

There is also an employee share-ownership programme in terms of which employees will have an effective 5% stake in Burger King...

Bakhe Majenge, Principal Legal Counsel - Competition Commission

Majenge says the competition authorities don't see this arrangement as a deterrent to investment in South Africa.

For more detail, listen to the interview below:




21 September 2021 7:57 PM
Tags:
The Money Show
Bruce Whitfield
Competition Commission
Grand Parade Investments
Burger King
Competition Tribunal
Burger King SA
Burger King sale
Emerging Capital Partners Africa Fund IV
Emerging Capital Partners
Bakhe Majenge
BEE credentials

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