Transaction Capital bought a 49.9% share of WeBuyCars in September 2020, increasing its share to 74.9% on approval by the South African Competition Commission on July 23, 2021. The transaction has tipped the scale, and has now made Transaction Capital the significant decision-maker in WeBuyCars.
The approval came mere days after the announcement that WeBuyCars purchased the Ticketpro Dome, an entertainment center, taking over ownership by September 2021. The dome, located in Gauteng, will serve as one of the biggest used-car dealerships globally in the facility, and is a key location to serve a large part of Johannesburg and Midrand.
The Commission found that the proposed Transaction Capital transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. They further found that the proposed transaction does not raise any public interest concerns.
Transactional Capital currently owns SA Taxi, where one can buy a new or used taxi, finance it and get insurance. WeBuyCars has similar services, but they are not focused on taxis. The services are thus complementary.
Currently, the overlap may seem small, but given the bigger landscape with competitors such as Autotrader, Cars.co.za, etc., this merger may lead to a more robust contender to compete against these market leaders.