Durban Container Terminal deal approved
Competition Commission approves acquisition with conditions
SOUTH AFRICA: The intended acquisition by International Container Terminal Services of the Durban Container Terminal Pier 2 has been approved by the Competition Commission given that the proposed transaction is unlikely to prevent or impact on competition in the market.
The Commission has, however, stipulated that no retrenchment of employees can take place within a three-year period of the merger.
A global independent terminal operator involved in the acquisition, development, management and operations of container port terminals in various countries, International Container Terminal Services is a publicly listed company in the Philippines and controls ICTSI Africa Headquarters Proprietary Limited (IAHQ) in South Africa which currently has no assets in the country.
IAHQ has committed to creating an employee incentive scheme and attaining a Level 4 B-BBEE status within one year of the transaction. In addition, both parties have committed to attaining a Level 1 B-BBEE and black women-owned status within three years of the transaction.
Durban Container Terminals Pier 2 (DCT Pier 2) is a business unit within Transnet that was incorporated for the purpose of the proposed transaction and includes a specialised maritime facility of the Durban Container Terminal with dedicated infrastructure and equipment for the handling of containerised cargo.
The DCT Pier 2 business also provides transhipment/re-shipment of containers, loading and off-loading of containers onto and from vessels, storage of containers, stacking and un-stacking of containers, receiving shipment, delivery and transfer of containers within and between the terminals.
2429