EOH shares slump after Tribunal’s decision to probe deal further
Tribunal wants additional information before deciding if it would permit deal to proceed without conditions
The Competition Tribunal’s decision to further investigate the sale of a unit of accounting group PwC, Combined Systems, to EOH’s subsidiary Mthombo, sent the computer group’s share down 3.5% to R126.74 on Thursday morning. The Tribunal said on Wednesday that it wanted additional information before deciding if it would permit the deal to proceed without conditions. A reason for the Tribunal’s concern was the two companies operated in the "the provision of fixed asset management services" market, which might suffer too much concentration if Mthombo took over PwC’s unit. "The acquiring group [EOH] provides services and products in consulting, technology such as software and infrastructure and outsourcing," the Tribunal said in Wednesday’s statement. EOH has not issued a cautionary statement regarding the proposed acquisition, as would be required if the deal were "material", which is generally defined as likely to cause a 10% change in its share price. "PwC Combined Systems is control...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.