By Arijit Ghosh and Terri-Ann Brouwers.
South Africa’s Competition Commission (CompCom) has approved private equity firm Harith General Partners’ proposal to acquire budget carrier FlySafair.
The CompCom recommended that the Competition Tribunal approve the transaction with conditions, according to a statement on its website.
The conditions were set out as follows:
“To remedy the competition concerns likely to arise from the proposed merger, the merger parties agreed to the following conditions: (i) information exchange; and (ii) ensuring that airline-related or airport-related goods or services provided to other airlines at Lanseria Airport are not provided based on unfair, unreasonable or discriminatory terms,” it said.
The acquisition will help FlySafair – which controls more than 60% of domestic seat capacity – address regulatory pressure to meet South African ownership rules. The Domestic Air Services Council in 2024 said that the carrier was in breach because trusts and companies – not people – own 75% of the airline’s voting rights.
The ruling followed a complaint by local rival Lift.
Harith invests in infrastructure across Africa, and also owns a stake in Lanseria International Airport, northwest of Johannesburg.
The recommendation marks a significant milestone in the proposed transaction, which would see infrastructure-focused investment firm Harith acquire Safair Holdings from Ireland-based ASL Aviation Holdings.
The regulator said Harith must not discriminate against other airlines using Lanseria as part of its decision to approve the transaction.
The proposed acquisition now awaits a final decision by the Competition Tribunal before it can be concluded.
The CompCom also recommended that the tribunal approve Coca-Cola HBC AG and Coca-Cola HBC Holdings BV’s purchase of CocaCola Beverages Africa. Among the conditions to the approval is a commitment to undertake a secondary listing of CCHBC in Johannesburg.