The Commission empowered by the Competition Act in South Africa has stopped the proposed acquisition of Burger King South Africa by Emerging Capital Partners (ECP) Africa. The Competition Commission did not approve of this acquisition typically because it would see Black Economic Empowerment (BEE) drop to 0% consequently, against October 2014’s Broad-Based Black Economic Empowerment Act.
ECP Africa is a Pan-African private equity firm that has raised over US$2 billion through funds and co-investment vehicles for growth capital investing in Africa. The firm’s intentions to acquire Burger King South Africa and Grand Foods Meat Plant started last year when Grand Parade Investments announced the sale of both businesses.
At the time the acquisition was announced, Burger King SA was valued at R670 million and Grand Foods Meat Plant at R23 million. However, as a result of the adverse effect of the novel corona virus, both businesses were revalued at R570 million and R27 million respectively.
Any company wishing to establish or do business in South Africa must consider and develop its Broad-Based Black Economic Empowerment (BBBEE) position, earlier known as BEE. It is in the same light that the country’s Private Security Industry Regulation Amendment Bill proposes that ownership of both existing and new securities must be at least 51%, and must be held by South African citizens.
In contrast, in line with the BEE Act, the commission found that Grand Parade Investment was primarily controlled by an empowerment entity typically where historically disadvantaged persons held more than 68% ownership compared to ECP Africa where these groups held no ownership.
Solange Che
• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....
• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...
• The U.S. imposed a 20% tariff on cashew exports from Vietnam and a 40% tax on suspected transshipm...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 mil...
• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...
MTN has announced the launch of the MTN Cloud Accelerator, a 12-week hybrid program designed to help African startups scale faster by leveraging MTN’s...
• CMOC increased cobalt production by 13% to 61,073 tonnes in the first half of 2025.• The DRC extended its cobalt export ban, forcing CMOC to stockpile...
Kenya plans to import 1.05 million tonnes of palm oil in 2025/2026, near its highest ever level. Malaysia supplies 90% of Kenya’s palm oil, sharply...
Power Africa closed after 12 years, leaving a gap in Africa’s electrification push. Mission 300 aims to connect 300 million Africans to electricity...
The Emerald Sea is a vast turquoise lagoon located in the northern part of Madagascar, just a few kilometers from the town of Antsiranana (formerly Diego...
Malawi’s Mount Mulanje and Cameroon’s Diy-Gid-Biy added to UNESCO World Heritage List Africa still holds 25% of endangered sites, despite recent...