27Four Holdings (Pty) Ltd v Prescient Life Ltd (LM151Aug18) [2018] ZACT 54 (25 September 2018)

27Four Holdings (Pty) Ltd v Prescient Life Ltd (LM151Aug18) [2018] ZACT 54 (25 September 2018)

The Tribunal found that there was no horizontal overlap between the merging parties, as 27Four does not hold or supply a linked-life licence. The only relationship identified was vertical, with Prescient leasing its licence to 27Four under a white-labelling agreement. Prescient's market share in licence leasing is less than 1%, and it faces significant competition from larger market participants. The Tribunal agreed with the Commission's conclusion that the transaction would not substantially prevent or lessen competition. Regarding public interest, the Tribunal found that the transaction would not negatively affect employment, as the only remaining employee would be transferred without...

Citation
[2018] ZACT 54
Parties
Applicant: 27Four Holdings (Pty) Ltd; Respondent: Prescient Life Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 September 2018
Case Number
LM151Aug18
Procedural Posture
Merger Approval / Final Decision
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Andiswa Ndoni, Medi Mokuena
Legal Topics
Merger Control, Vertical Relationships, Linked Life Licence Leasing
Competition Law Commercial and Corporate Merger Control Vertical Relationships Linked Life Licence Leasing

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Parties

27Four Holdings (Pty) Ltd

Applicant

Prescient Life Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed acquisition of Prescient Life Ltd by 27Four Holdings (Pty) Ltd will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, particularly regarding employment.

Ratio Decidendi

The Tribunal found that there was no horizontal overlap between the merging parties, as 27Four does not hold or supply a linked-life licence. The only relationship identified was vertical, with Prescient leasing its licence to 27Four under a white-labelling agreement. Prescient's market share in licence leasing is less than 1%, and it faces significant competition from larger market participants. The Tribunal agreed with the Commission's conclusion that the transaction would not substantially prevent or lessen competition. Regarding public interest, the Tribunal found that the transaction would not negatively affect employment, as the only remaining employee would be transferred without...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between 27Four Holdings (Pty) Ltd and Prescient Life Ltd is approved without conditions.