WeBuyCars sale to Transaction Capital gets green light
The Competition Commission has recommended that the Competition Tribunal approve the proposed transaction, which will see Transaction Capital become the majority shareholder in WeBuyCars.
It has recommended the transaction be approved without conditions.
“The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets,” it stated.
“The Commission further found that the proposed transaction does not raise any public interest concerns.”
Transaction Capital announced in May that it concluded agreements to increase its shareholding in WeBuyCars from 49.9% to 74.9%.
The remaining 25.1% of the shares in WeBuyCars will be held by the family trusts of the founding shareholders, Faan and Dirk van der Walt.
WeBuyCars is a principal trader of used vehicles through e-commerce and physical infrastructure, offering finance, insurance and other allied products.
Transaction Capital said it expected the additional investment of 25% in WeBuyCars to add immediate value to the company, which comprises two divisions: SA Taxi and Transaction Capital Risk Services.
WeBuyCars CEO Faan van der Walt said they had been impressed with the insights of the directors appointed by Transaction Capital to the WeBuyCars board.
He added that there is a strong cultural fit between Transaction Capital and WeBuyCars.
“We have seen the operations of SA Taxi and believe that Transaction Capital has the necessary expertise to advance WeBuyCars’ vision of offering credit and insurance-related products to its customer base,” Van der Walt said.
The Competition Commission approval comes after WeBuyCars announced plans to buy the Ticketpro Dome in Northgate.
According to WeBuyCars, the Dome was originally intended to be a permanent motor showroom, allowing people to view and test drive various vehicle brands under one roof.
The original vision for the Dome never materialised, and it became a multi-purpose entertainment venue over the years.
WeBuyCars said it intends to realise the original purpose of the Dome and develop it into one of the biggest second-hand car dealerships in the world.
Van der Walt said the Ticketpro Dome would allow them to increase their footprint in the Johannesburg area.
“Apart from cementing our presence in northern Johannesburg, we are confident this growth path will have a positive impact on the economy,” he said.
The Dome will store approximately 1,500 vehicles, providing customers with a wide range of vehicle choices.
WeBuyCars currently has eight branches located nationally, of which four are in Gauteng. The newest branch, in Germiston, launched in June 2021.
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