Competition Commission Provisionally Approves Takatso-SAA Deal, Mzansi Cries Foul: "This is State Capture"

• The Competition Commission is willing to give the Takatso Consortium and SAA take-over plan the go-ahead under certain conditions
• The Competition Commission wants the latest low-cost airline, LIFT, to exit the consortium for the deal to proceed
• South Africans are still not happy about a significant stake in SAA being sold to a private company

JOHANNESBURG - The Competition Commission (CC) has provisionally approved Takatso Consortuim's plans to take over South African Airways (SAA).

The approval comes with the condition that LIFT, South Africa's latest low-cost airline, is excluded from the consortium.

Takatso welcomes the Competition Commission's approval

Speaking on SABC News, Takatso spokesperson Thulasizwe Simelane stated that the CC's approval is a significant step forward in gaining full competition clearance and ensuring that SAA remains competitive in the market.

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Simelane added that the high demand and low supply transaction is inadequate to support the growth and operations of SAA and the efficiencies in the South African economy.

LIFT co-founder Gidon Novick says they have not sold minority stake in Takatso

According to News24, the LIFT trademark is owned by Global Aviation and Syranix, which hold a minority stake in Takatso.

The SAA is concerned that LIFT will have access to competition-sensitive information, which would decrease competition in the domestic passenger airlines market.

The announcement by the CC indicated that Global Aviation and Syranix had agreed to sell their minority shares in Takatso, but LIFT co-founder Gidon Novick says that's not the case.

Novick explained that if their skills were no longer needed, they would remain as minority shareholders without board representation. This means they will not have access to any competitively sensitive information.

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South Africans uncomfortable with SAA and Takatso consortium deal

The Takatso-SAA deal has been very controversial, with many South Africans unhappy that 51% of the state-owned enterprise will be sold to a private company.

Here's what South Africans are saying about the latest development:

@maile_bethuel said:

"What happened to the nationalisation of SOEs? Now it is individuals who are benefiting, next is Eskom. Watch this space, this was made intentional since they are careless authorities."

@WilliamHenryYo2 said:

"We need a new government in 2024. Failed state at the moment. Incompetent and corrupt."

@Thambu02 said:

"This is a state capture."

@Dumisan01399730 said:

"The decision by the Competition Commission to give a go-ahead to the Takatso consortium to take over SAA has Pravin Gordhon's influence all over it. Pravin Gordhan and Ramaphosa will leave this country owning nothing, we will be left with a government without power or owning nothing."

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@calvinmaila1 said:

"So technically, Takatso was given 51% of SAA on a silver platter. Pravin spent 3bn just to lose 51%. This deal is fishy on all levels. So-called black elites are stealing state property and everyone is quiet about it."

SAA’s new interim board holds 1st meeting on asset valuation and audit outcomes, SA surprised SOE still exists

Briefly News previously reported that the new South African Airways (SAA) interim board held its first meeting on Wednesday, 19 April, only days after Public Enterprises Minister Pravin Gordhan appointed it.

Top on the newly minted board's agenda is the valuation of SAA assets and strategies for good audit outcomes.

Gordhan appointed ANC stalwart and former tourism minister Dereck Hanekom as the chairperson of the embattled airline's board, Daily Maverick reported.

Source: Briefly News