Competition Commission clears Sasfin’s R201m Capitec Rental Finance deal
The Competition Commission has approved Sasfin Capital’s proposed acquisition of Capitec Rental Finance for R201 million, subject to conditions including a temporary moratorium on merger-related retrenchments.
The Competition Commission has approved Sasfin Capital’s acquisition of Capitec Rental Finance for R201 million, pending certain conditions. The Commission ruled on Wednesday that the deal is unlikely to diminish competition in any market. Sasfin Capital, an investment holding group, aims to acquire Capitec Rental Finance, referred to as CRF, and all companies under its control.
The Commission required a moratorium on job cuts resulting from the merger for a set period to address employment concerns. Both companies specialize in providing asset-backed equipment rental finance to corporate and small and medium-sized enterprises (SMEs), allowing businesses to utilize equipment without paying the full upfront cost.
Capitec Rental Finance, which was sold to Sasfin Capital in July for R201 million in cash, will continue to fund its rental finance operations through a secured R1.6 billion credit facility after the deal finalizes. This facility will maintain CRF's existing rental receivables book, comprising rental agreements that generate ongoing repayments for the business.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
