The Competition Tribunal has unconditionally approved the acquisition of Tiger Automotive Investments (Pty) Ltd (TiAuto) by a consortium comprising Carlyle Group L.P. (Carlyle) and Old Mutual Private Equity (Old Mutual).
The primary acquiring firm, Business Venture Investments 1858 (Pty) Ltd, is a company created for the purposes of the proposed transaction. It is ultimately controlled by certain funds managed by affiliates of the Carlyle on the one hand; and Old Mutual Private Equity, on behalf of certain funds advised by it, on the other.
TiAuto is a company involved in the wholesale and retail supply of passenger car tyres and aftermarket alloy wheels in Southern Africa.
The Competition Commission found that the proposed transaction does not give rise to any competition concerns due to the fact that the acquiring firms are largely investment entities and do not have any interest in firms directly involved in similar businesses as TiAuto. In addition, the proposed transaction does not raise any public interest concerns as the business of TiAuto will continue to operate on a standalone basis and will not be integrated into the acquiring firms. Accordingly, no retrenchments will occur as a result of the proposed transaction. The Tribunal agreed with the Commission's findings and approved the merger without conditions.