South Africa: Competition Tribunal asked to reconsider ECP-Burger King deal

Grand Parade Investments has advised shareholders that it has reached agreement with South Africa’s Competition Commission on a revised set of conditions that address the public interest concerns regarding the sale of Burger King South Africa to private equity firm Emerging Capital Partners (ECP).

In June, the Competition Commission revealed that it has prohibited the transaction whereby funds advised by ECP intended to acquire Burger King South Africa and Grand Foods Meat Plant from Grand Parade Investments. The commission found that the merger would lead to a significant reduction in the shareholding of historically disadvantaged persons in the target firm, from more than 68% to 0% as a result of the merger.

The parties have submitted a request to the Competition Tribunal to reconsider and approve the proposed transaction, subject to the draft conditions. The hearing to consider the merging parties’ request for the Competition Tribunal to approve the proposed transaction, subject to the draft conditions, took place on 18 August 2021. Grand Parade Investments said shareholders will be advised on the outcome of the hearing in due course.