

Pinnacle Technology's purchase of almost 35% of Datacentrix has been approved by the Competition Tribunal, although the authority did attach a condition to its green light.
The off-market deal, which cost Pinnacle more than R200 million in mid-year, raised concerns at the Competition Commission, which was worried competitive sensitive information could be passed between companies.
Pinnacle bought into Datacentrix to determine whether there is potential to develop a working relationship in the future, as it seeks to move up the IT value chain.
The tribunal said this afternoon, after hearing the matter, that Pinnacle's stake gives it material influence over shareholder votes, which gives it control over Datacentrix. It viewed the share purchase as hostile, because the offer was not recommended by Datacentrix's board to its shareholders.
During the commission's investigation of the deal, concerns were raised about Pinnacle's ability to pass on customers' competitively sensitive information to Datacentrix, says the tribunal.
The commission found that original equipment manufacturers require distributors to collate certain confidential information on customers, the tribunal adds. Pinnacle, as a distributor, collects this information from customers who compete with Datacentrix, it says.
The deal would allow for the free flow of competitively sensitive information from Pinnacle to competitor, Datacentrix, the commission found. As a result, it recommended conditions so that Pinnacle cannot disclose sensitive information.
The tribunal has now imposed this condition.
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