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Edward West | 7 August 2023

The Competition Commission said Friday it has recommended to the Competition Tribunal that the proposed acquisition by Petrefuel of Royale Energy be approved, with conditions.

Petrefuel Holdings (formerly known as Petre Moya Holdings) is controlled by Petredec South Africa Holdings.

In South Africa, Petredec Group is a non-refining wholesaler and distributor of refined fuel products namely petrol, diesel, lubricants, illuminating paraffin, and liquefied petroleum gas (LPG). It also has petrol and diesel storage facilities.

Royale Energy is controlled by Royale Energy Group, a non-refining wholesaler and marketer of refined fuel products (petrol, diesel, illuminating paraffin, lubricants, and LPG) in South Africa. Royal Energy also operates small petrol and diesel storage facilities.

To address employment concerns, the companies agreed not to retrench any South African employees as a result of the merger, for three years.

To promote a greater spread of ownership, the parties said they would establish an employee share ownership programme for qualifying employees.

The companies would also assist independent historically disadvantaged persons who were owner drivers, and who meet certain qualification criteria to purchase fuel tanker vehicles as part of an enterprise and supplier development initiative.

The merging parties also undertook to establish an education fund, in accordance with specific design principles, for the benefit of qualifying workers.

The Commission said the proposed transaction was unlikely to result in a substantial prevention or lessening of competition in any relevant markets, and there were no other public interest concerns.

‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.


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