In 2002, Imperial and Renault formed a partnership in which the French multinational invested R100m in Renault SA for a 51% shareholding, while Imperial acquired the 49% balance.
The Competition Tribunal unconditionally approved the transaction in which Imperial will buy an additional 11% shareholding from Renault France for an undisclosed amount.
The Competition Commission recommended the unconditional approval after its investigation found the deal was unlikely to give rise to competition concerns. Renault SA has a 3.8% share of the South African car market.
Renault SA said lthat the French parent company would continue to play an active role in the business as both partners continue to focus on growing Renault's market share in South Africa".
Imperial's chief executive Hubert Brody said the company had a proud history with the Renault brand and was pleased to continue its long-standing partnership with Renault France.
"We aim to leverage our distribution experience to achieve significant growth of Renault SA, which is underpinned by some exciting new models," Brody said.
Renault entered South Africa through Imperial Holdings in 1996 and reaffirmed its commitment to remain in South Africa in 2002 through the joint venture between Imperial and Renault France. Imperial began importing Renault vehicles in 1997.
Imperial is a diversified industrial services and retail group with operations in logistics, car rental, tourism, vehicle distribution, automotive parts and industrial products distribution. Its operations are predominantly in South Africa, but it also has businesses in Africa, Europe, UK, US and Australia.
Renault France reaffirmed its objective to establish a strong commercial presence in southern Africa, saying a closer working relationship between Renault and Imperial had been agreed upon, with Imperial taking a more active role in the management of the business.
Euromed-Africa region chairman Jean-Christophe Kugler said Renault had strong ambitions in Africa, in particular South Africa, the continent's largest automotive market.
"Our partnership with Imperial is key for the future and we are happy to benefit from such a recognised leader in distribution in South Africa. In turn we at Renault, are proud to offer our expertise and strong product lineup in the coming years," Kugler said.
Renault has a network of 48 dealers, of which four are owned by Renault SA.
The launch of the Clio 4 and Renault Duster in September, two of the best-selling cars worldwide, is part of the company's efforts to increase its market share in passenger vehicles.
Renault SA is the only importer and distributor of Renault vehicles in the country.
Source: Business Day via I-Net Bridge
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