Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.

Publish Date : 11-Dec-2014

The sale of BAE Systems Land Systems South Africa (LSSA) to state owned defence group Denel has been recommended by the South African Competition Commission as the transaction is not expected to lead to reduced competition. On 2 December, the Commission had a meeting for discussing the sale. Later it released a statement stating that, “the Commission has recommended to the Competition Tribunal that the merger involving Denel SOC Limited (Denel) and BAE Systems Land Systems South Africa Proprietary Limited (LSSA) be approved without conditions.”

It adds further, “Denel controls various other firms and intends to acquire 100% shares of the LSSA…The Commission found that the transaction is unlikely to lead to a substantial prevention or lessening of competition. The transaction is unlikely to raise public interest concerns.” BAE Systems and Denel in August signed an agreement to proceed with the sale, worth around R855 million ($79.85 million), whose completion was expected during the fourth quarter of this year after receiving regulatory and other approvals.

Erwin Bieber, president of BAE Systems, Inc.’s Platforms & Services sector, said, “This proposed sale will further shape our portfolio around our core capabilities in tracked, combat and amphibious vehicles and weapon systems, which represent markets where we possess strong franchise positions and discriminating capabilities.”
“We also recognise that the LSSA employees have made a significant contribution to BAE Systems over the last 10 years, and we believe that transitioning ownership to Denel will better position the LSSA business to achieve its full potential working with a strong South African company.”

The transaction would feature sale by BAE Systems of its 75% interest in LSSA, and sale by DGD Technologies (2001) Proprietary Limited of its 25% stake in LSSA as LSSA is a joint venture between the two companies. LSSA includes three business segments with an employee base of around 500 people. The LSSA business deals in the design and manufacture of military tactical-wheeled vehicles, mechanical driveline products, precision-machined components and gears, fire directing systems, and remote weapon launching platforms, subsystems and products.

Go to previous page