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Competition Commission gives provisional approval for SAA merger with Takatso

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The commission announced its recommendation on Friday following an investigation into the ongoing deal.

JOHANNESBURG - The Competition Commission has recommended the provisional approval of the proposed merger between South African Airways and Takatso Aviation.

The Takatso Consortium agreement was announced by Public Enterprises Minister Pravin Gordhan in 2021, indicating that Takatso would buy 51% of SAA.The state-owned aviation company went into business rescue in 2019 and was declared solvent in 2021. Some of the concerns raised that delayed the merger include one of tTkatso's shareholders, Global Aviation Operations, having access to SAA's sensitive information, which the commission said could result in the lessening of the prevention of competition in the domestic passenger airlines market.

He added that should the Competition Tribunal approve this merger, the Department of Public Enterprises will only own 49% of South African Airways.

 

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