On 24 January 2012, the Commission unconditionally approved the
intermediate merger between Compass and Supercare. In terms of the
transaction, Compass will acquire the entire issued shares in
Supercare and will acquire sole control over Supercare.
The Commission unconditionally approved the intermediate merger between Compass Group Southern Africa (Proprietary) Limited (Compass SA) and Supercare Services Group (Proprietary) Limited (Supercare). In terms of the transaction, Compass will acquire the entire issued shares in Supercare and will acquire sole control over Supercare.
Compass SA provides food catering and a wide range of supporting services such as building maintenance, cleaning, housekeeping, garden maintenance, hygiene, pest control, logistics and office services to a variety of sectors.
Supercare is a multi-service provider offering contract cleaning, hygiene, pest control management, labour outsourcing and financial services.
The Commission found that even though there was a horizontal overlap between the parties, the merged entity would have a low combined market share in the affected markets. With respect to the vertical analysis, the Commission found that the merger does not raise any significant foreclosure concerns in the hygiene service market. The Commission therefore found that the proposed transaction would not result in any competition or public interest effects and approved the merger without conditions.
Webber Wentzel acted for the merging parties.
Date of approval: 24 January 2012
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