The Competition Commission has approved the proposed merger between Comparex Africa and Business Connexion Solutions.
The approval opens the way for the creation of the country`s largest black-empowered information and communications technology company, with revenue of more than R3 billion.
Comparex CEO Peter Watt says the focus now will be on ensuring that maximum value is derived from the merger.
"A structured integration process will be undertaken, co-ordinated through a nationwide merger project. We have already commenced working on other aspects of the merger, such as branding and structural considerations that have to be addressed."
Watt has said in the past that Comparex Africa will consider changing its trading name and branding once the merger has been completed.
Comparex is also planning to simplify the group structure. The idea is to have a single quoted company with the operating companies below that, rather than the complex layered structure of the present.
The deal will ultimately see Business Connexion Investments, the current holding company of Business Connexion, own a 25.01% stake in the merged business, with Comparex Africa Group holding the balance.
Watt has said that the deal, valued at R222 million, excludes Nanoteq, Perago, Mosaic, DHS and other interests within the Comparex Holdings group as well as the surplus cash reserves earmarked for distribution to shareholders.
He says the group has only partial shareholdings in those entities and at some stage a decision will have to be made on whether there is value in bringing them into Comparex Africa or making a distribution to shareholders.
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