The Competition Commission has conditionally approved the proposed transaction whereby KSB intends to acquire Davron, Davron KZN, and Davron Services (collectively, the Davron Entities).
The primary acquiring firm is KSB (KSB SE & Co. Kommanditgesellschaft auf Aktien (KGaA)), a limited partnership in terms of the laws of the Republic of Germany. In South Africa, KSB controls KSB Pumps (S.A.) (Pty) Ltd (KSB SA). KSB SA controls KSB Pumps and Valves (Pty) Ltd (collectively referred to as the KSB Group).
The KSB Group is active in the fire control and protection system industry. It manufactures and sells pumps, valves and associated components. In South Africa, through KSB Pumps & Valves, KSB Group supplies products to the fire control and protection market. The products are used in the building, energy, mining, petrochemicals and water industries.
The primary target firms, Davron Entities, offer a variety of goods and services in the fire safety market. In the main, the Davron Entities procure loose items such as pumps, engines, electrical motors, steel panels and other components from various suppliers in order to design and manufacture fire control pumpsets. The Davron Entities manufacture, design and install fire protection pumpsets, controllers and associated fire safety equipment. Additional value-added services offered by Davron Entities include inspections, servicing, repair and maintenance.
The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. To address public interest concerns, the merging parties have undertaken employment commitments as well as commitments to promote HDP ownership.