- South Africa’s competition watchdog has given the green light for two separate mergers of renewable energy companies in the country.
In a statement, the Competition Tribunal says it has approved, without conditions, the transaction whereby Greenstreet, through its Stanlib Fund II SPV, will acquire shareholding in Solar Capital De Aar 3 (SCDA 3) from existing shareholders.
While the second merger approved is Engie Global Developments sole acquisition and control of Xina Concentrated Solar Power (Xina CSP) and joint control of Xina CSP Operations and Maintenance (Xina O&M).
The tribunal notes that of relevance to the proposed transaction are the controlling interests held by the acquiring group in various wind and solar photo-voltaic (PV) independent power producers (IPPs) that operate under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The tribunal concluded that the proposed transactions is unlikely to lead to a substantial prevention or lessening of competition in the national market for renewable solar PV energy, or in the narrow market for the supply of electricity to Eskom by renewable energy producers using solar PV energy.
In addition, the tribunal says the transactions is unlikely to result in any negative effects on the public interest; in particular, on employment or shareholding by historically disadvantaged persons.
Author: Bryan Groenendaal