The Big Green gets conditional go signal from CompCom

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The Big Green gets conditional go signal from CompCom

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Published Date: 2018-01-04 | Source: Stephen Gunnion | Author: Stephen Gunnion

The Big Green gets conditional go signal from CompCom

Old Mutual will have to satisfy some empowerment and enterprise development criteria before it can complete its restructuring

The Competition Commission has given Old Mutual conditional approval to proceed with the managed separation of its businesses, intended to unlock value for shareholders. In a statement yesterday, The Commission said it had recommended to the Tribunal that it approve Old Mutual Limited's acquisition of Old Mutual Plc.

Old Mutual Limited was set up last year to facilitate the reorganisation of the group and to allow for a primary listing on the JSE, a standard listing on the London Stock Exchange and secondary listings on the Malawi, Namibia and Zimbabwe stock markets. It will be the South African holding company of the group's emerging-market operations and will retain a 19.9% strategic stake in banking subsidiary Nedbank, with the balance of its 54% stake being distributed to shareholders. It has already reduced its stake in its US asset management business and is in the process of unbundling its Old Mutual Wealth. The fourth unit, Old Mutual Emerging Markets, houses the group's insurance businesses in South Africa and across the rest of the continent. The listing is planned for this year after the release of its full-year results.

The Commission says the deal should be subject to conditions agreed upon with the Department of Economic Development, which has to take into account the public interest implications of the transaction, including black economic empowerment, employment and enterprise development. It said Old Mutual had made certain undertakings to address the Department's concerns.

Its shares closed 1.5% lower at R37.75.



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