Mergence said deal-maker Robbie Gonsalves would continue to lead a team of eight, among them veteran mining analyst Peter Major. Photo: Pixabay
CAPE TOWN – The Mergence group has acquired a controlling stake in Cadiz Corporate Solutions for an undisclosed sum.

The company said the transaction would see its mergers and acquisitions team rebranded under the name Mergence Corporate Solutions.

It said deal-maker Robbie Gonsalves would continue to lead a team of eight, among them veteran mining analyst Peter Major.

The team already operates from the same premises in Cape Town, and will do so as well in Johannesburg once a property lease term ends.

The group said the team would also continue to offer mergers and acquisitions, corporate restructuring, capital raising, black economic empowerment, business valuations and derivative strategies services.

The group has partnerships with M&A practices in China through The Beijing Axis, and in India through Eternus.

It said the team had been involved in some of the largest transactions in South Africa, worth more than R105 billion over the past 10 years.

The deals include BEE deals such as Telkom and MTN, as well as some large cross-border transactions such as the acquisition by Marriott of Protea Hotels.

Mergence and Cadiz connected through a recently concluded transaction where the team was seeking a BEE partner for its client, Bahrain Fibreglass Group (BFG).

Mergence consequently acquired a controlling stake in BFG’s operations in South Africa, with effect from December 2018.

Mergence, founded in August 2004, is an independent investment house and one of the largest black-controlled and managed financial institutions in South Africa. It manages assets of more than R40bn.

Founder and chief executive Masimo Magerman said the group was excited at the prospect of the additional capabilities in the group.

Mergence Corporate Solutions MD Robbie Gonsalves said the merger of the former Cadiz team into Mergence had been seamless and “there is good chemistry” as some of the individuals have known each other for many years. Gonsalves said he and Magerman’s “paths had crossed” on a merger deal some time back, and they had got to know each other well since then.

The team will in turn benefit from Mergence’s empowerment credentials and access to deal-flow, he added.

BUSINESS REPORT