AFC to acquire South African road tolling company

10 Jun 2016
Financial Nigeria


The acquisition of South African Toll Road Company by the AFC has received the approval of SA's Competition Commission.

Andrew Alli, President/CEO, African Finance Corporation

The Africa Finance Corporation (AFC), a Lagos-based multilateral institution, is poised to complete a deal to buy the South African Toll Road Company (SATRC) after the Competition Commission of South Africa gave its unconditional approval to the acquisition deal on Thursday.

“The Commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in any market as there is no overlap between the activities of the merging parties. In addition, the proposed transaction does not raise any public interest concerns,” the Commission said in a statement.

The SATRC is an investment company that holds investments in infrastructure and infrastructure-related assets. The company is controlled by the South Africa Infrastructure Fund Trust (SAIF), an unlisted infrastructure fund targeting equity investments in sub-Saharan Africa.

SAIF has interests in three major 30-year toll road concessions, mainly in South Africa. Some of the concessions include a 25 percent stake in the Bakwena Platinum Corridor Concessionaire, owners of the 380 km Pretoria to Lobatse, N4 toll road concession; a 46.5 percent stake in Trans African Concessions, owners of the 503 km Witbank to Maputo (Mozambique), N4 cross border toll road concession; and 29 percent stake in N3 Toll Concessions, owners of the 420 km Cedara to Heidelberg, N3 toll road concession.

The details and terms of AFC’s proposed acquisition of the SATRC were not disclosed. The acquisition deal will now go to the Competition Tribunal of South Africa for final clearance.

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