South Africa Blocks Naspers’s Takeover Of WeBuyCars

South Africa’s competition authorities have blocked a bid by Naspers to buy online vehicle group WeBuyCars amid the concern it could have led to higher used-car prices in SA.

The Competition Tribunal on Friday, March 27, confirmed it had upheld the Competition Commission’s recommendation to block the deal, without giving reasons.

With a market value of R1.1-trillion (US$62.4 billion), Naspers has grown to become one of the world’s top-10 technology investors. Locally, the business is made up of Media24 and online retailer Takealot, with international investments that include OLX and Chinese technology giant Tencent. 

In May 2019, the Commission stated that Naspers’s acquisition of the local vehicle-purchasing service should be blocked as it could lead to higher used-car prices in SA, result in the removal of a potential competitor and substantially reduce competition in the car buying market.

The competition watchdog recommended to the Competition Tribunal that the deal be “prohibited.”

Full Content: Comp Trib

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