Malleable Castings swallowed up in acquisition by the Baobab Industrial Group

The Competition Commission has approved another proposed transaction whereby Holdco intends to acquire DLM and WRE, without conditions.

The acquiring firm HoldCo (Baobab Industrial Group), a newly incorporated private company, does not conduct any business operations and is not directly or indirectly controlled by any other firm.

The first target firm is DLM. DLM wholly controls the following firms: Metermatic (Pty) Ltd (Metermatic), Dupleix Liquid Meters Madagascar SARLU and MDF Engineering (Pty) Ltd (MDF Engineering).

Through three divisions (valves, flow, and instrumentation), DLM provides solutions for over-pressure protection, flow, level and density measurement, automation, and control requirements. These products and solutions are consumables in the greater materials manufacturing sector including mining, petrochemical, and other industries.

The second target firm is WRE. The shares in WRE are wholly owned by Pillans Investments (Pty) Ltd (Pillans). Apart from WRE, Pillans does not hold interests in other firms. WRE is a diversified manufacturer with three main divisions namely West Rand Engineering, Malleable Castings, and Africa Thermal Insulations. WRE also supplies finished products to Klambon Water, its wholly owned subsidiary in the Commonwealth of Australia.

The Commission is of the view that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. In addition, the proposed transaction does not raise any other public interest concerns.