The Competition Commission has approved the acquisition by Canada’s Volaris Group of JSE-listed software services group Adapt IT but has imposed conditions related to black ownership.
“The commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets,” the regulator said in a statement on Monday.
However, in what it described a “public interest” issue, it found there would be a “dilution in ownership by historically disadvantaged persons” (HDP) at Adapt IT.
“To address this concern, the commission and the merger parties agreed to conditions … requiring the merging parties to maintain a certain level of HDP ownership post-merger as well as the establishing of a trust to hold shares in Adapt IT on behalf of workers.”
The deal, which is expected to be concluded by December, will see Adapt IT delisted from the JSE. Adapt IT has offered R7/cash in cash to buy out Adapt IT minorities. The deal came after Huge Group made an unsolicited offer to buy Adapt IT, a move that did not enjoy the support of management and which ultimately was unsuccessful. – © 2021 NewsCentral Media