SA Company Acquires Barloworld Motors

CCA approves the proposed car dealership companies merger on condition that there shall be no merger-specific job losses


The Competition and Consumer Authority (CCA) has given the thumps up to acquisition of Barloworld Motor Botswana by NMI Durban South Motors, this publication has established.

CCA says it determined, through the analysis of the facts of the merger, that the structure of the relevant market is not expected to change upon implementation of the proposed merger. CCA has also concluded that the proposed transaction is not likely to result in any adverse effects on competition or endanger continuity of the supply of goods and services in the relevant market in Botswana.

“However, this kind of transaction may result in retrenchments as a result of new owners implementing their own strategies,” CCA warned. “In an effort to guard against merger-specific retrenchments, the Authority has approved the proposed acquisition of 100 percent of the issued share capital of Barloworld Motor Botswana (Pty).”

Therefore, a condition that has to be met is that there shall be no merger-specific retrenchments or redundancies that may affect employees of the merged enterprise. The merged entity is to revert to the Competition and Consumer Authority within 12 months from the date of approval with a status report regarding this condition, stating the number of employees who have left the company, their names and reasons for leaving.

According to information available from the Companies and Intellectual Property Authority (CIPA), the target enterprise, Barloworld Motor Botswana, is owned by Car Rental Holdings, which in turn is owned by Avis Southern Africa. Barloworld Motor is a motor retailer selling brand new and used passenger light, medium and heavy commercial vehicles and buses. The brands it sells are Volvo, Volkswagen, Ford and Audi.

The acquiring enterprise, NMI DSM, is a joint venture company controlled 50/50 by entities owned or controlled by the Akoo Family (South Africa) and Barloworld South Africa. NMI DSM is also a retailer of new and used passenger vehicles, light, medium, heavy and extra heavy commercial vehicles. The brands that its dealerships sell include Mercedes Benz, Jeep, Fuso and Freightliner.