Tribunal conditionally approves Sanlam Emerging Markets and Allianz Europe B.V. merger

Pretoria - The Pretoria-based Competition Tribunal of South Africa on 17 August 2023 announced the conditional approval of the proposed large merger whereby Sanlam Emerging Markets (Pty) Ltd ("SEM") and Allianz Europe B.V. ("Allianz Europe") intend to jointly control SAN JV (RF) (Pty) Ltd ("SAN JV").
 
The Tribunals said: "SEM is wholly-owned by Sanlam Limited ("Sanlam"), a public company incorporated in the Republic of South Africa. Sanlam is the ultimate holding company of the Sanlam Group. The Sanlam Group is an international financial services group comprising several insurers, financial services providers and other financial institutions. Allianz Europe is controlled by Allianz SE ("Allianz"), a public company incorporated in Germany. The Allianz Group offers a wide range of life and non-life insurance products to both retail and corporate customers".
 
In a presentation done by Heinnie Werth, CEO Sanlam Emerging Markets and Executive Director of Sanlam Ltd, in October 2022 about the merger, he points to the strengths of both entities that will make the merger a success. Some of those strengths are "SEM's extensive business footprint in Africa, with a strong life footprint and expertise coupled with an extensive GI presence supported by reinsurance captive, and investment management experience in Africa". Also mentioned are "SEM's digital capability, and its relationship with MTN which will aid in enabling the digital strategy".

Regards Allianz, Werth points to the fact that "it is the largest global insurer with strong expertise and presence in new markets, citing Egypt. Allianz has a deep research and technical skills base and investment management capability and expertise coupled with appropriate and relevant digital capabilities.

"With this merger, the two entities will accelerate organic growth in GI portfolio and introduce new products in new markets coupled with an improved pan African multinational offering including P&C and Employee Benefits (GLA & Health), reinsurance optimisation, digitisation and scale while also leveraging Allianz specialist insurance and credit rating".

The JV will cover 27 countries in Africa across various lines of business, with positions strengthened in 12 overlapping countries, and its ambition is to be a TOP 3 insurance company in all the chosen markets with the objective of becoming a true pan-African Champion.

In conclusion, the Competition Tribunal said "the SAN JV, which will be known as Sanlam Allianz Africa, does not currently provide any products or services directly. Post-merger, Sanlam Allianz Africa will operate as a pan-African life and general insurance joint venture between SEM and Allianz Europe. The target firm will not have any activities in South Africa itself".