{"id":688099,"date":"2023-05-15T14:58:56","date_gmt":"2023-05-15T12:58:56","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=688099"},"modified":"2023-05-16T16:09:11","modified_gmt":"2023-05-16T14:09:11","slug":"clicks-and-sorbet-deal-gets-the-greenlight-competition-commission","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/688099\/clicks-and-sorbet-deal-gets-the-greenlight-competition-commission\/","title":{"rendered":"Clicks and Sorbet deal gets the greenlight: Competition Commission"},"content":{"rendered":"

The Competition Commission of South Africa (CCSA) has recommended the Competition Tribunal to approve Clicks Investments’ acquisition of Sorbet Holdings from Old Mutual Private Equity.<\/p>\n

The CCSA held its ordinary meetings on 11 April 2023 and 9 May 2023, to make decisions on matters brought to it by public and corporate applicants in terms of the Competition Act, including the Clicks and Sorbet deal.<\/p>\n

In November<\/a>, the Clicks Group said that it had acquired the beauty company for a cash consideration of R105 million.<\/p>\n

The CCSA said that the proposed transaction will probably not lessen the competition in South Africa – adding that it does not raise any other public interest concerns.<\/p>\n

It said that the Clicks Group – which controls Clicks Investments – will be responsible for designing and developing the sorbet-branded beauty products and contracts while a third party makes the products. The Sorbet-branded products beauty products will be sold at the Clicks Group\u2019s stores and website.<\/p>\n

However, the takeover will only include a select group of stores – “the target group” –\u00a0 including Sorbet Experience, Sorbet Man, Sorbet Man Woodlands and Candi and Co-Professional Salons.<\/p>\n

The target group is a franchisor of the Sorbet brand with just under 200 franchised salons which are operated independently by several franchisees (\u201cSorbet Independent Salons\u201d).<\/p>\n

The target group also sells Sorbet-branded beauty products to Sorbet Independent Salon and the corporate Sorbet Salons, with the Sorbet Independent Salons also selling other brands from third-party manufacturers.<\/p>\n

The Clicks Group will not acquire Sorbet Independent Salons, and these will operate independently from the relevant franchisee.<\/p>\n

Moreover, to address concerns regarding the lessening of competition, Clicks Investments will fund up to half the start-up costs for at least five more franchisees from historically disadvantaged groups.<\/p>\n

Clicks Investments will also ensure that at least 50% of franchise stores will have at least 50% ownership from historically disadvantaged persons (HDPs) within five years.<\/p>\n

Clicks Investments and Sorbet Holdings will also increase local manufacturing of Sorbet-branded products, while Clicks Investments will also hold 10,000 training sessions for Sorbet franchisees or their employees.<\/p>\n

\n

Read<\/strong>: Dis-Chem co-founder to step down as CEO after 45 years at the helm<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Competition Commission of South Africa approves clicks R105 million acquisition of Sorbet. <\/p>\n","protected":false},"author":95,"featured_media":645961,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-688099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/688099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=688099"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/688099\/revisions"}],"predecessor-version":[{"id":688583,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/688099\/revisions\/688583"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/645961"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=688099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=688099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=688099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}