The decision has had a substantial and negative effect on public interest in conflict with the Competition ActThe decision by the Competition Commission last week to block the sale of Burger King by Grand Parade Investments is incomprehensible.
The facts are these: Grand Parade Investments, a 69% black-owned JSE-listed firm that was founded with R28m raised from 10,000 historically disadvantaged South Africans, wants to sell Burger King to Emerging Capital Partners , a private equity firm. ECP is an Africa-focused firm with investments across the continent, headquartered in the US.
The traffic law says, 'Thou shall not cross a red light'. The rules of the Competition Act says, 'No merger shall be approved unless it promotes interests held by historically disadvantaged persons (HDPs) or workers.' Other than both being prescripts in law, what's different?