Jasco to review its strategy
Group may sell fire business if it cannot find a suitable acquisition after Competition Commission rejects deal
Electronics group Jasco Electronics may sell its fire business if it fails to make an acquisition that will beef up the unit. This comes after its proposed acquisition of Cross Fire Management was prohibited by the Competition Commission, saying that the merger would probably lead to a consolidation of the market in Gauteng and the Western Cape and result in a reduction of the number of companies in markets that are already highly concentrated. Jasco is active in the fire protection industry and it manufactures pipes used in fire protection systems. The commission also referred seven firms specialising in installing and maintaining fire control and protection systems, including Cross Fire Management, to the Competition Tribunal for prosecution. Jasco group CEO Pete da Silva said that, while the group disagreed with the commission, it decided not to challenge the decision and would wait for the authorities’ outcome on the investigation into the industry. Jasco will either try to acqu...
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