FlySafair takeover moves closer as Competition Commission recommends approval

FlySafair

Johannesburg – South Africa’s Competition Commission has recommended that the Competition Tribunal approve private equity firm Harith Aviation’s proposed acquisition of FlySafair owner Safair Holdings, subject to conditions aimed at protecting competition in the domestic aviation sector.

The recommendation, announced in the Commission’s latest decisions statement released on Monday, clears another hurdle for the transaction, which is expected to help FlySafair comply with South Africa’s local ownership requirements.

FlySafair, which controls more than 60% of South Africa’s domestic airline seat capacity, came under regulatory scrutiny after the Domestic Air Services Council ruled in 2024 that the airline was in breach of ownership rules because trusts and companies, rather than individuals, held 75% of its voting rights, Daily Investor reported.

The ruling followed a complaint by rival airline Lift, the report said.

According to the Competition Commission, Harith is jointly controlled by the Pan-African Infrastructure Development Fund 2 and Harith Infraco. Through its fund management business, Harith finances infrastructure projects across Africa in sectors including transport, energy, telecommunications, healthcare, and water.

Safair Holdings, currently controlled by Ireland-based ASL Aviation, owns Safair Operations, which runs the FlySafair passenger airline business, providing scheduled domestic and regional passenger services.

While the Commission found that the merger is unlikely to substantially lessen competition, it imposed conditions to address concerns arising from Harith’s interest in aviation infrastructure, including its stake in Lanseria International Airport.

The merging parties agreed to measures preventing the exchange of commercially sensitive information and ensuring that airline- or airport-related goods and services provided to competing airlines at Lanseria Airport are not offered on unfair, unreasonable or discriminatory terms.

The proposed acquisition must still receive final approval from the Competition Tribunal before it can be implemented.

In the same statement, the Competition Commission also recommended that the Tribunal approve Coca-Cola HBC AG and Coca-Cola HBC Holdings BV’s proposed acquisition of Coca-Cola Beverages Africa, subject to several public interest conditions. These include a commitment not to retrench employees for a specified period, maintain historically disadvantaged person and worker ownership levels, continue procuring from empowered suppliers and small businesses, invest in South African operations, retain the company’s headquarters in South Africa, and pursue a secondary inward listing of Coca-Cola HBC AG on the Johannesburg Stock Exchange, subject to regulatory approvals.

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