institutions in South Africa which have been intimately involved in such lucrative acquisitions. In short, some of these disinvesting multinationals have not entirely disappeared from South Africa; on the contrary, the former subsidiaries in reality remain firmly rooted on the spot through ingenious devices such as voluntary mergers and easy acquisitions. (b) Sale to local management 24. This form of sale has been employed in 36 cases, or 11 per cent of the disinvestments reported for South Africa. The normal process of a management buy-out is for the new management to raise a loan from an investment bank, usually with the assistance of the parent company, and then to use it to purchase a controlling interest in the subsidiary. In South Africa, however, the practice has often been for the disinvesting companies themselves to carry out the task of raising funds and settling deals. The arrangement suits them since it allows business to be conducted as usual by a management team that they know and trust. The "ex-subsidiary" then pays royalties or licence fees for the use of the parents' technology and processes, in addition to the purchase price. A management buy-out team is more dependent on the parent company for technology, patents and supplies than would be a third-party buyer. This dependence is attractive as it offers better prospects of a long-term relationship with the new company based on the provisions covered in the agreements. The big disinvestments, including General Electric, General Motors and International Business Machines of the United States and the Rover Group of the United Kingdom, have involved sales to local management. General Motors was sold to its local management on terms which required an adjunction of R 100 million from the parent company, and the subsidiary was sold to local management under the direction of an American 
**Analysis**
The text appears to be discussing the disinvestment of multinational companies in South Africa, specifically the ways in which they have retained a presence in the country through various means such as voluntary mergers and sales to local management. The text highlights the involvement of well-known companies like General Electric, General Motors, and International Business Machines, suggesting that the topic is related to the business and economic sector.

**Category**
Industry, International trade