Competition Commission approves construction groups’ alliances, despite concerns
The plan by three construction groups to enter into economic alliances with black-owned firms has been given the green light by the Competition Commission, which has recommended to the Competition Tribunal that the transactions be approved — with conditions.The proposed alliances are between Raubex and two small-to medium-sized companies, Umso Construction and Enza Construction; Stefanutti Stocks and TN Molefe Construction and Axsys Group; and WBHO Construction and Fikile Construction, Edwin Construction and the Motheo Construction Group.The alliances are the result of a settlement agreement concluded between construction companies and the government following the commission’s investigation into cartel conduct in the construction industry between 2009 and 2013. The probe looked into collusion over the construction of soccer stadiums for the Soccer World Cup.In terms of the agreement reached with the government, the construction companies could either elect to sell a portion of their...
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.