The Competition Tribunal has given the sale of the SA franchise of Burger King by Grand Parade the go-ahead, with conditions, allowing foreign investment worth about R470m to flow into the country.

The tribunal’s website reveals the deal was approved on Friday, but does not specify what conditions were put in place.

Burger King was sold by Grand Parade, a BEE investment holding company, to US private equity fund Emerging Capital Partners (ECP).

A Business Day report says the tribunal must make a final decision, and appears to have approved the deal.

Its website said it still needs to issue the reasons for its decision.

In June, the Competition Commission blocked the deal on concerns that it would reduce the BEE shareholding from 68% to 5%, even though 99% of Grand Parade shareholders wanted to sell Burger King.

The commission was forced to backtrack on prohibiting the merger after an outcry from business leaders, who pointed out the decision would make it harder for black business owners to sell their assets and would deter foreign investment.

In August the commission and Grand Parade came to an agreement on the sale, which was presented before the tribunal for adjudication.

The deal that the commission accepted was not that different from that first offered when the sale was proposed.

To get the deal over the line after it was blocked, Grand Parade agreed to sell its Burger King meat plant to a black buyer and not to ECP.

Full Business Day report