The Competition Tribunal has conditionally approved the merger which will see Remgro secure sole control of alcoholic beverages giant Distell operations.
A statement released by the Competition Commission noted that the transaction is made of a series of inter-related steps. These will “consequently confer Remgro International Holdings (RIH) with sole control of Capevin and, ultimately, Distell. RIH is wholly-owned by Remgro.”
“The merger will see the creation of a new entity controlled by Remgro Beverages and was approved subject to conditions that are transactional in nature and are confidential. ”
Remgro, an investment holding company, holds interests in companies that operate across industries including banking, healthcare, industrial, infrastructure, media, sport, food and home care. Remgro’s interest in the liquor market was through its indirect shareholding in Remgro Capevin Investments that holds shares in Distell.
Distell is a leading producer and marketer of wines, spirits, ciders and other ready-to-drink beverages.
Target company Capevin is an investment holding company that holds an indirect shareholding interest in Distell through RCI, an investment holding company holding a shareholding interest in Distell. RCI is controlled by RIH and Capevin.
The Tribunal previously approved the Public Investment Corporation’s (PIC, duly authorised representative of the Government Employees Pension Fund) acquisition of a stake in Distell. That acquisition was subject to the PIC divesting a percentage of its stake in Distell to a BEE entity.