Harith General Partners Gains Antitrust Approval for FlySafair Acquisition

South Africa's Competition Commission granted approval on May 22, 2024, for Harith General Partners' proposed acquisition of the budget airline FlySafair. This decision by the antitrust regulator removes a key obstacle for the private equity firm's expansion into the aviation sector. The transaction, initially announced in late 2023, will see Harith General Partners take a controlling stake in FlySafair, a prominent low-cost carrier operating primarily within South Africa and on select regional routes.

Harith General Partners, a significant player in infrastructure and private equity across Africa, aims to leverage FlySafair's established market position and operational efficiency. The acquisition is part of Harith's broader strategy to diversify its investment portfolio and capitalize on the growing demand for affordable air travel on the continent. FlySafair has been recognized for its consistent profitability and operational reliability since its inception in 2014, making it an attractive target for investment.

The Competition Commission's approval was contingent on ensuring that the acquisition would not substantially lessen competition in the relevant markets. During the review process, the Commission assessed potential impacts on airfares, route availability, and overall consumer choice. The regulator's clearance indicates that it found no significant competition concerns arising from Harith's proposed ownership of FlySafair. This regulatory endorsement is crucial for the finalization of the deal, which is expected to be completed in the coming months, subject to any remaining customary closing conditions.