Competition Commission asked to justify SAA-Takatso merger recommendation

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Competition Commission asked to justify SAA-Takatso merger recommendation
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Last month, the commission gave provisional approval of the merger which would see Takatso buy 51% of SAA.

JOHANNESBURG - The Competition Commission has had to justify its recommendation on the South African Airways Takatso Consortium merger.

The commission has now referred the deal to the Competition Tribunal, which is having hearings on Tuesday. The tribunal has spent the morning hearing competition-related submissions on the Takatso Consortium merger, including how divestiture of two subsidiaries will address the commission's concerns on competition.

Takatso has also had to reassure the panel that it would still be able to manage SAA optimally without its subsidiaries.In its recommendation, the commission made no merger-related retrenchments one of the conditions one that Takatso has accepted.

 

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