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COMPETITION TRIBUNAL OF SOUTH AFRICA
Case no: LM192Feb21
Aker Horizons AS (Primary Acquiring Firm)
and
Mainstream Renewables Power Ltd (Primary Target Firm)
Heard on: 26 February 2021
Order Issued on: 26 February 2021
REASONS FOR DECISION
[1] On 26 February 2021, the Competition Tribunal unconditionally approved a large
merger whereby Aker Horizons AS (“Aker”) will acquire,
of the issued share capital in Mainstream
Renewable Power Ltd (“MRP”).
[2] Aker is an investment company established by Aker ASA with a mandate to invest and
actively enter into the renewable energy and clean technology sector. The Aker group’s
activities in South Africa
Aker does not
have any activities in South Africa.
[3] MRP is a company incorporated in terms of the laws of the Republic of Ireland. 1 MRP
is a global renewable energy company that develops, builds, and operates wind and
solar power plants (utility-scale renewable assets) in various markets worldwide,
including South Africa. Through Lekela Power B.V, MRP has developed and brought
to financial close five operational wind projects. 2
[4] In short, the transaction happens at an international level where Norwegian firm, Aker
is acquiring from an Irish firm MRP, its South African interests in renewable energy.
[5] The Competition Commission (“Commission”) found that the proposed transaction
does not result in any horizontal or vertical overlaps between the activities of the
merging parties in South Africa.
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2 The wind projects have 20-year Power Purchase Agreements (“PPAs”) with the national power
producer, Eskom, pursuant the Renewable Energy Independent Power Producer Procurement
Programme (REIPPPP). The Lekela Power B.V projects are located in the Northern Cape and Western
Cape provinces.
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[6] Further, the Commission found that the acquiring firm does not have any employees
in South Africa. In terms of the target firm, its South African employees, through their
employee representative, were notified of the merger and no concerns were raised.
The merging parties submitted that the proposed transaction will not result in any
retrenchments.
[7] No third party raised any concern.
[8] We concluded that the proposed merger is unlikely to result in a substantial prevention
or lessening of competition in any relevant market, and that it does not have any
negative effect on the public interest.
12 March 2021
Mr Enver Daniels Date
Ms Mondo Mazwai and Mr Andreas Wessel concurring.
Tribunal Case Manager: Lumkisa Jordan
For the Merging Parties: M Angumuthoo of Bowmans and N Mackenzie of
Fasken
For the Commission: B Mabatamela and R Maphwanya