Cape Town – The Competition Commission has recommended the approval of AF Financial Services, controlled by Alexander Forbes Limited, to acquire the 44 standalone Retirement Fund Administration (RFA) from Sanlam Life, with conditions.
The commission, in recommending that the Competition Tribunal approve the proposed transaction, found that the acquisition was unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
It's been recommended that no merger-specific retrenchments take place for two years.
The Alexander Forbes Group provides services that include retirement funds and asset consulting.
“The Sanlam Group conducts operations through four business clusters, which are insurance (life and general), financial planning, retirement, investment, and wealth management.
“Relevant to the proposed transaction is the standalone Retirement Fund Administration services offered by the Target Administration Business, a business unit of Sanlam Life,” the commission said.
“The commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
“The commission found that the proposed transaction might result in employment concerns.
“To remedy these concerns, the commission has recommended a condition that the merging parties will not effect any merger-specific retrenchments of employees as a result of the merger for a two-year period following the implementation of the merger.
“The commission further found that the proposed transaction does not raise any other public interest concerns.”
Cape Times