Comp Tribunal conditionally approves Momentum’s acquisition of Investment Managers

Pretoria - The Competition Tribunal has today announced the conditional approval of the merger whereby Momentum Metropolitan Strategic Investments (Pty) Ltd (“MMSI”), a wholly owned subsidiary of Momentum Metropolitan Holdings Ltd (“Momentum Metropolitan”), intends to acquire Investment Managers Group (Pty) Ltd (“Investment Managers”) and shares in Royal Investment Managers (Pty) Ltd (“Royal Investment”).

The deal had initially been signed on 11 September 2023, with Momentum Metropolitan having entered into a sale agreement with OUTsurance Group (previously Rand Merchant Investment Holdings – RMIH) in terms of which Momentum Metropolitan will acquire RMIH’s share in the RMI Investment Managers Group Proprietary Limited (IMG). The transaction was subject to customary terms and conditions, including approval by the competition authorities. The acquisition is expected to enable the Momentum Metropolitan Group to increase its asset management market participation significantly. 

In a statement released by Momentum Metropolitan on 12 September 2023, the Group said it had been a minority shareholder in IMG alongside RMIH since 2015 when the multi-affiliate investment management model was launched. It said the transaction will increase Momentum Metropolitan’s minority stake in a range of independent, owner-managed investment businesses with good growth potential.  

At the time of signing the agreement, Jeanette Marais, Group CEO of Momentum Metropolitan said, “Over the last eight years, our focus has been on the affiliate strategy, which involves identifying the best boutique investment talent in South Africa and investing in their businesses without interfering. We aim to offer strategic guidance and a distribution network to help them achieve sustainable growth. However, we understand the importance of their independence and value their entrepreneurial identities".

The acquiring group (MMSI, Momentum Metropolitan and all firms directly or indirectly controlled by Momentum Metropolitan) firmly remains in the business of financial services offering life and non-life insurance, employee benefits (including healthcare and retirement provision), asset management, property management, investments and savings, healthcare administration and health risk management, and client engagement solutions, while Investment Managers and Royal Investment invests in asset management firms.