Nov 22,2018 / News / Legal Brief

This matter involved large mergers (WBHO Construction Proprietary Limited, Raubex Proprietary Limited, Stefanutti Stock Proprietary Limited and seven emerging enterprises in the construction industry) which involve joint ventures between established, listed construction companies and various emerging black-owned construction companies, in order to give rise to skills transfer and transformation within the construction industry. These mergers were notified in fulfilment of objectives under a settlement agreement reached between seven listed construction companies and the Government of the Republic of South Africa concluded in order, amongst other things, to settle potential civil damages claims arising from collusion in the construction industry.

Werksmans represented all ten merger parties in three separate merger notifications which raised novel questions about the extent of permitted collaboration between competitors through limited-duration single economic entities or alliances and the role of public interest benefits in horizontal merger analysis and merger conditions to alleviate residual concerns regarding co-ordination amongst competitors in an industry characterised by a history of collusion.
Werksmans successfully obtain merger approval.