23 July 2019

The Competition Tribunal has approved the formation
of an economic alliance between WBHO Construction and Trencon Construction.

Trencon will replace Fikile Construction as an
emerging contractor in the WBHO Alliance, with which WBHO initially entered
into an agreement.

The alliance was established following a settlement
agreement concluded between several construction companies and government in
October 2016.

Seven large listed construction companies made the
commitment to either ensure that the equivalent of 25% of their yearly South
African turnover is executed by black construction companies within seven
years, or that more than 40% of their construction business is sold to black
construction shareholders within the same timeframe.

In turn, the settlement agreement followed a
Competition Commission investigation into widespread collusion in the industry
over several years.

The 2016 settlement agreement made provision for
the establishment of a fund to develop and enhance the construction industry
and, particularly, transformation objectives.

The trustees of the fund are made up of construction companies who are party to the settlement agreement, as well as government representatives.

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