Competition Commission South Africa prohibits Burger King deal 02 Jun 2021 (Last Updated June 2nd, 2021 09:29)
The proposed deal would have a negative effect on promoting a greater spread of ownership.
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Burger King headquarters in unincorporated Miami-Dade County, Florida. Credit: Coolcaesar on Wikimedia.
The Competition Commission has prohibited private equity fund ECP Africa’s proposal to acquire Burger King South Africa and Grand Foods Meat Plant from Grand Parade Investments.
It was found that as a result of the merger, the shareholding of historically disadvantaged persons (HDPs) in the target firm is expected to fall to 0% from more than 68% currently.
Burger King South Africa, through its various franchise subsidiaries, operates more than 90 fast-food restaurants across the country.