Capitalworks-Peregrine deal should get conditional clearance, South African watchdog says
( July 16, 2020, 08:55 GMT | Official Statement) -- MLex Summary: Plans by special purpose vehicle Capitalworks to buy financial services group Peregrine Holdings should be cleared subject to conditions, South Africa's Competition Commission has said in a recommendation made to the national competition-specialist court. The deal is unlikely to substantially prevent or reduce competition in any relevant market, but raises job concerns, the watchdog said. It therefore suggested that the court clear the merger on condition that a moratorium be placed on merger-related job cuts, for a period of two years following the approval of the transaction.Statement follows. 1.1 Capitalworks Atlanta GP (Pty) Ltd, (“Capitalworks”) acting in its capacity as the general partner of Project Atlanta Investment Partnership III (collectively the “Acquiring Group”)/ Peregrine Holdings Limited (PGR) The Commission has recommended that the Competition Tribunal (Tribunal) conditionally approve the proposed transaction whereby Capitalworks intends to acquire PGR. Capitalworks is an investment Special Purpose Vehicle that forms part of the Acquiring Group. The Acquiring Group is involved in the provision of private equity services in South Africa and other jurisdictions. PGR is a financial services group involved in wealth management, asset management and advisory services. The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. However, the Commission found that the merger raises employment concerns and has recommended that the Competition Tribunal approves the merger subject to a condition placing a moratorium on merger related retrenchments for a period of two years post the merger approval date....
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