Star 2024-10-14

THE Competition Commission has approved the acquisition of The Beverage Company, commonly known as Bevco, by Varun Beverages, a significant player in the global beverage market. This decision, announced on Friday, came with a series of conditions designed to safeguard competition and protect public interest within the local market. Following an analysis of the transaction under Rule 38(3)(c) of the ‘Rules for the Conduct of Proceedings in the Competition Commission’, the Commission concluded that the merger was unlikely to substantially impede competition in any significant way. The approval marks a milestone for Varun Beverages, which aims to consolidate its presence in the South African beverage landscape. The Commission noted that both parties agreed to a condition ensuring no job losses will result from this transaction. Further commitments were made, including…

South Africa has rocketed up the rankings in the UN e-Government Index for 2024, climbing from 65 in 2022 to an impressive 40 out of 193 countries. This advancement places the nation among well-established economies globally, marking it as a leader in e-government development within Africa. In a notable milestone, South Africa’s progress is echoed by Mauritius, which ranks 76th, and Tunisia at 87th. Both South Africa and Mauritius have now entered the category of countries classified within the very high e-Government Development Index (EGDI) group. This classification highlights the remarkable strides made in enhancing digital government infrastructure and services across the region. Minister of Communications and Digital Technologies Solly Malatsi welcomed this significant improvement by emphasising the importance of accelerating South Africa’s National e-Government Programme. “As the digital economy…

Transnet has announced that the review process for the Durban Container Terminal (DCT) Pier 2 will proceed without undue delay, following an interim court ruling that has raised questions about the award of the contract to Philippines-based International Container Terminal Services Incorporated (ICTSI). On Friday, Transnet confirmed its intention to approach the court soon to secure a preferred date for the hearing of the review application. The interim interdict, delivered on Wednesday last week, does not annul ICTSI’s status as the preferred bidder, despite legal action from APM Terminals, the unsuccessful bidder. APM Terminals aims to interdict Transnet from finalising the contract for revitalising Pier 2, while a forthcoming part B hearing will address the legitimacy of Transnet’s decision to select ICTSI. “It would, therefore, be premature to make any…

Coronation Fund Managers plans to hike its BEE from a 31% ownership level to over 51% as growing industry pressures mean it might not be able to increase its R632 billion in assets under management (AUM) unless it transforms further. Explaining why the company has proposed transactions that will involve participation by its black employees – there are currently 193 – as well as the upliftment of a broad base of beneficiaries, Coronation’s directors on Friday said these transactions were necessary notwithstanding the existing Level 1 BEE contributor status, and 31% black ownership level. “Coronation estimates the total indicative expense ... to be approximately R270 million to R330m. Coronation further estimates the dilutionary impact ... on earnings and dividends per Coronation share to be about 2% to 3% – excluding…

Finance Minister Enoch Godongwana says Mboweni served his country with distinction Former finance minister Tito Mboweni has been described as a vital cog that helped to stabilise South Africa’s macroeconomic landscape in the various roles he played in government. Mboweni died on Saturday in a Johannesburg hospital surrounded by his loved ones after a brief illness. He was 65. His death has dealt a blow to the National Treasury and the government’s finance institutions coming so soon after the passing of another former finance minister, Pravin Gordhan. Mboweni served as minister of finance between 2018 and 2021, guiding South Africa’s economy through the worst of the Covid-19 pandemic. He returned to Cabinet reluctantly to serve as finance minister when President Cyril Ramaphosa came calling after former finance minister Nhlanhla Nene…

Bancassurance (where banks sell insurance products) has been around for decades. Banks are well positioned in this regard as they are often part of key life moments that catalyse such sales. Most notable is the purchase of a house and provision of a mortgage, providing the opportunity for banks to cross sell both life insurance and home and contents cover. Banks also have insight as to the quantum of insurance premiums leaving their clients’ accounts every month and to whom these are paid. Established distribution channels – both bricks and mortar branches as well as digital channels such as apps - allow banks to sell insurance products at a low incremental cost. Despite these advantages, however, most insurance products are still sold as opposed to bought and require intensive face…