Business Unity South Africa CEO Cas Coovadia said the “unintended consequences” of the Commission’s decision include “a potential slowdown in investment and merger activity, as well as significant constraints on the ability of black investors to realise value from investments.”
Big business has trashed the Competition Commission South Africa for its decision to block Grand Parade Investments’ (GPI’s) planned sale of the local Burger King franchise to a US-based private equity firm, claiming it might have the unintended consequence of further damaging South Africa’s reputation as an attractive investment destination.
Business Unity South Africa (Busa), a lobby group comprising the country’s biggest businesses, is the latest to criticize the competition watchdog for blocking the sale of the Burger King South Africa franchise to Emerging Capital Partners for R570-million (US$41.4 million) on grounds that the latter has no black empowerment credentials.
On June 1, 2021, the Commission recommended that the Competition Tribunal, which still has to make a final decision on the sale, block the transaction as it would reduce black ownership of Burger King from 68% to zero.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Extends Support for Farms and Fisheries Amid Market Disruptions
May 5, 2024 by
CPI
Sony and Apollo Bid $26 Billion for Paramount Acquisition
May 5, 2024 by
CPI
Goldman Sachs Resolves Decade-Old Metal-Rigging Class Action Lawsuit
May 5, 2024 by
CPI
Italian Antitrust Ruling Puts Halt on Intesa Sanpaolo’s Fintech Ambitions
May 5, 2024 by
CPI
Google Antitrust Case: Closing Arguments Conclude
May 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI