In a recent move that took many by surprise, the South African government halted the sale of its national airline to Takatso Consortium, a set of potential buyers led by private equity firm Harith General Partners. The government cited an inability to reach agreeable terms after three years of discussions as the main reason for this decision. This comes despite the fact that the country’s competition regulator had already given the green light for the purchase.
The consortium had reached an agreement with the government in 2021 to acquire a controlling stake in South African Airways, an agreement that has now been nullified. The renegotiation of terms was necessitated by a re-evaluation of the airline’s assets and its business model after the devastating impact of the COVID-19 pandemic.
The decision has raised questions regarding the airline’s future and the potential for privatization to bring much-needed change and financial stability. For more detailed coverage of this development, please read the original article available here.