Comair (South Africa) (MN, Johannesburg O.R. Tambo) says its proposed acquisition of Star Air (South Africa) (BRH, Johannesburg O.R. Tambo) has fallen through almost a year after the tentative deal was first announced.

In May 2019, Comair said it had entered into an agreement with Sundrops Investments Proprietary Limited, Smashing Star Investments Proprietary Limited, and Marcel Liebenberg to acquire all shares and claims in Star Air Cargo and its MRO firm Star Air Maintenance for ZAR75 million rand (USD5.14 million at the time) plus profit share payments, the sum of which was capped at ZAR250 million (USD17.14 million at the time).

However, a year on, and despite having garnered antitrust approval from South Africa's Competition Commission, Comair said in a statement on April 3 that the acquisition has now fallen through.

"Shareholders are now advised that with effect from March 31, 2020, the Parties by mutual consent, agreed to terminate the Agreement, such that the Agreement shall cease to have any further force or effect," it said in a stock market filing.

With the deal's collapse, Glenn Orsmond, Star Air's chief financial officer who later became co-CEO of Comair in July last year, has also chosen to retire and has accepted a retrenchment package.

Star Air Cargo specializes in ACMI/charter flights and, prior to the COVID-19 crisis, operated a fleet of five B737-300s and five B737-300(F)s for a variety of customers that included LAM - Linhas Aéreas de Moçambique (TM, Maputo) and Comair itself.