JSE-listed logistics, fleet and dealership company Super Group has concluded the acquisition of RSC Consulting Services Clean Tech 360, after getting the nod from the Competition Tribunal this week.
Super Group, which is worth R12.3-billion on the JSE, is currently 68.18% black-owned and 24.72% black women-owned.
The group provides supply chain management services, operates vehicle dealerships and provides fleet leasing and management services. The company has more than 14 900 employees in 21 countries.
It operates a fleet of over 287 000 vehicles and manages more than 302 000m² of warehousing in South Africa.
RSC’s services include audit and verification of stock, integrity and accuracy audits, as well as inbound and outbound distribution, while Clean Tech provides commercial and hospitality cleaning and employee management.
The tribunal found that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market and the proposed transaction does not raise any public interest concerns.
“It was found that the large distribution logistics companies such as Super Group, Imperial, Barloworld, Bidvest, and Vector Logistics already utilise the services of the likes of RSC, Funxion O, Professional Risk and Bidvest Vericon in running the distribution centres of retailers and manufacturers, and will continue to do so post the implementation of the proposed transaction,” the tribunal said.
“Therefore, we concluded that the proposed transaction is unlikely to result in any anti-competitive portfolio concerns in any market.
“As such, the proposed transaction will not lead to any substantial prevention or lessening of competition in any relevant market.
“The merging parties submitted that the proposed transaction will not have any adverse effect on employment and no retrenchments will result from the implementation of the proposed transaction.”
One of the conditions attached to the approval of the deal is that Super Group will announce its new employee share ownership plan in March, through which qualifying workers from the stocktaking and cleaning target companies will benefit from shareholding in Super Group.
In its interim results presentation last week, Super Group indicated that it is looking for other acquisition opportunities.
“New business opportunities, rigorous cost management and operational excellence initiatives will contribute to a satisfactory increase in earnings,” the company said.
“The group’s solid financial position will continue to support the pursuit of strategic growth opportunities, including the acquisition of businesses that complement and expand its existing offerings.”
Super Group’s revenue for the six months to December 2022 increased 34.6% to R29.12-billion.
“Super Group’s scale and diversification remain the cornerstones of our proven ability to successfully navigate volatile operating conditions,” said Super Group CEO Peter Mountford, “with all key performance metrics now substantially up on pre-Covid levels.
Rigorous cost management and operational innovations have also helped the group mitigate escalating inflation rates, diesel price increases and rand volatility.
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