Cape Town - Hollard Holdings' merger with Regent Insurance and Regent Life Assurance from the Imperial Group was conditionally approved, the Competition Tribunal announced on Tuesday.
"In terms of the conditions set by the Tribunal the merging parties may not retrench any employee for a period of three years."
The Tribunal noted that Regent Group, Hollard Life and Hollard Insurance must also circulate a copy of the employment conditions to all employees.
Hollard is a holding company that operates in the insurance sector through its subsidiaries that provide life and general insurance products and services to the insurance sector.
The Regent Group offers short-term and long-term insurance policies and non-insurance products in SA, which comprises life insurance products, travel insurance products, car and home insurance products and commercial vehicle insurance.
The Tribunal stated that Regent Group, Hollard Life and Hollard Insurance must ensure that none of their directors are appointed to the board of directors of MotoVantage or otherwise be a member of the management team to prevent an exchange of information between the companies.
"Hollard Holdings will be entitled however to appoint a director to the board of directors of MotoVantage who is not involved in the operation and strategy of the VAPS businesses within the Regent Group, Hollard Life and Hollard Insurance."
The merger parties confirm that from the date of implementation no distribution agreement, verbal, written or otherwise will be concluded between the Imperial Group and Hollard Holdings/the Regent Group for a specified confidential timespan.
"The merging parties have said that all agreements with the Imperial Group/Regent Insurance will remain in force after the implementation date," said the Tribunal.