Harith Aviation: FlySafair Acquisition Approved by Competition Tribunal

• Harith Aviation has received final approval from the Competition Tribunal for its 100% acquisition of FlySafair.
• FlySafair is South Africa’s largest domestic airline and a significant regional carrier.
• The transaction is expected to close in late 2026, pending further regulatory approvals and conditions.
• Harith views the deal as a long-term South African investment aimed at expanding critical infrastructure and supporting economic development.
• FlySafair will maintain independent operations, its existing management, and its low-cost model post-acquisition.

Harith Aviation, based in Sandton, has received final clearance from the Competition Tribunal for its complete acquisition of FlySafair.

Harith Aviation, based in Sandton, has received final clearance from the Competition Tribunal for its complete acquisition of FlySafair. This significant development was confirmed by the group on Thursday morning, with Harith Aviation Consortium expressing its welcome for the Competition Tribunal's decision regarding the FlySafair acquisition. FlySafair holds the distinction of being South Africa’s largest domestic airline and also operates as a prominent regional carrier across Africa.

The transaction, which involves Harith Aviation taking full ownership, was initially stated to be set for closure by the end of the current year. However, a subsequent announcement indicated that the transaction is currently anticipated to conclude in late 2026, contingent upon the receipt of outstanding regulatory approvals and the satisfaction of various conditions precedent. This timeline suggests a multi-stage process beyond the initial tribunal approval.

This acquisition follows a period of considerable turbulence in the aviation industry, particularly in the wake of the Covid-19 pandemic's economic impact, which saw numerous local and international airlines either enter business rescue or cease operations entirely. Harith itself had previously made an unsuccessful attempt to acquire the state-owned airline, SAA, through the Takatso Consortium. The current approval marks a significant step for Harith in solidifying its presence within the South African aviation sector.

Harith articulated that this transaction is designed to inject long-term South African investment into a thriving local airline, thereby ensuring that ownership remains within the country. The firm emphasized that the deal underscores its dedication to fostering South Africa's economic advancement by enhancing critical infrastructure. For FlySafair, the operational approach is expected to remain unchanged; the airline will continue to function autonomously under its existing management team, preserving its low-cost operational model and customer service offerings.

Sipho Makhubela, the CEO of Harith General Partners, characterized the acquisition as more than a mere investment in an airline. He described it as a clear demonstration of enduring South African capital supporting a successful South African enterprise. Makhubela lauded FlySafair for cultivating an exceptional airline, a trusted brand, a robust management team, and a market-leading customer proposition. He further clarified that Harith's role will be to bolster this success with patient capital, facilitating the airline's subsequent growth phases.

Elmar Conradie, FlySafair’s CEO, conveyed his satisfaction with the Competition Tribunal’s ruling, recognizing it as a pivotal achievement for the transaction and an affirmation of confidence in the airline’s future prospects. Conradie expressed enthusiasm for the collaboration with the incoming shareholder and the forthcoming opportunities to fortify the airline's foundations and expand the South African passenger aviation market. He reassured that, throughout the entire process, operations have remained "business as usual" for both customers and employees, a continuity that is expected to persist.

The Competition Tribunal's decision is a crucial element in the broader regulatory framework governing mergers and acquisitions in South Africa, particularly within vital sectors like aviation. It signals the tribunal's assessment of the competitive landscape and the potential impact of such consolidation. Notably, CemAir had previously petitioned the tribunal to block Harith's acquisition of Safair, indicating that the approval came despite objections from other market participants.

Harith Aviation Consortium's investment in FlySafair underscores the recognition of aviation's critical role as a catalyst for connectivity and economic activity. Sipho Makhubela highlighted that dependable and affordable air travel is instrumental in broadening access to opportunities, bolstering tourism and trade, and contributing to overall economic expansion. This perspective frames the acquisition not just as a corporate transaction, but as an investment in national development.

Following the Competition Tribunal’s green light, the involved parties are now proceeding with the remaining regulatory approvals and conditions precedent necessary for the full implementation of the transaction. While these specific outstanding requirements were not detailed, their completion is essential for the deal to officially close. The anticipated closure in late 2026 suggests a comprehensive and potentially complex set of final steps that must be navigated before the acquisition is fully realized.

This Competition Tribunal approval for a significant acquisition in the South African aviation sector provides insight into the regulatory body's approach to market consolidation and competition in critical infrastructure. Lawyers advising on M&A, particularly in regulated industries, should analyze this decision for precedents regarding conditions, timelines, and the overall regulatory environment for large-scale transactions.

Source: Original reporting via Moneyweb.