South Africa: Competition Commission recommends approval of proposed Futuregrowth citrus deal
The following article is a slightly edited statement from South Africa’s Competition Commission.
South Africa’s Competition Commission has recommended that the Competition Tribunal approve the proposed transaction whereby Futuregrowth Asset Management intends to acquire 18.75% share capital in citrus producer Fruitone Holdings Proprietary Limited (Fruitone), without conditions.
Futuregrowth is wholly owned by Old Mutual Investment Group (OMIG). OMIG is a wholly owned subsidiary of Old Mutual Emerging Markets Proprietary Limited (OMEM). OMEM is in turn wholly owned by Old Mutual Group Holdings (SA) Limited (OMSA), which is in turn wholly owned by Old Mutual Limited (OM). OM is the acquiring group.
Futuregrowth is a specialist asset management company in South Africa operating within the acquiring group. The company offers third-party fiduciary agency portfolio management services to individuals and institutions in South Africa. One of the funds in the portfolio of funds managed by Futuregrowth is the Futuregrowth Agri-Fund, which specialises in the investment of agricultural land, biological assets, agriculture infrastructure and other related farming implements. The Agri-Fund’s investments are in the actual farmland and infrastructure, which is leased to an approved operator to manage and run the farm.
Fruitone is wholly owned by Boyes Group Holdings Proprietary Limited (Holdco) which is in turn owned by various trusts. Fruitone is the target firm and is active in the South African citrus cultivation and export market as a grower-exporter.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.
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