Competition Commission approves local logistics merger
15 Mar 2018 - by
The Competition Commission yesterday approved the proposed merger between South African holding company SEMA Holdings Limited and logistics company CWT-Aquarius Shipping International.
However, the acquisition was approved with conditions as SEMA provided long distance and cross-border road transport services in competition with CWT through subsidiary M B SEC. This meant that anti-competitive information sharing between the merging parties was likely to be facilitated due to SEMA’s representation on the CWT board of directors.
“In order to address this concern, the Commission has imposed conditions which will ensure that the acquiring group (SEMA) does not nominate directors to the CWT board who have operational involvement in line haul transportation services,” said a spokesperson.