Abercom Proprietary Limited v Branch Engineering Proprietary Limited and Another (LM109Sep16) [2016] ZACT 100 (5 December 2016)

Abercom Proprietary Limited v Branch Engineering Proprietary Limited and Another (LM109Sep16) [2016] ZACT 100 (5 December 2016)

The Tribunal found that the proposed transaction would not alter the structure of any market, as the acquiring group has no competing interests in the relevant sector. The Commission's investigation revealed no adverse competition effects, including for third-party tenants, and no concerns were raised by affected parties. The merging parties confirmed that there would be no negative impact on employment, and no other public interest issues were identified. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition and does not raise public interest concerns. The transaction was approved unconditionally.

Citation
[2016] ZACT 100
Parties
Applicant: Abercom Proprietary Limited; Respondent: Branch Engineering Proprietary Limited; Respondent: Erf 616 Selby Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 December 2016
Case Number
LM109Sep16
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The proposed merger is approved unconditionally.
Judges
AW Wessels, Mondo Mazwai, Andiswa Ndoni
Legal Topics
Merger Control, Substantial Lessening of Competition, Public Interest, Employment Effects
Competition Law Merger Control Substantial Lessening of Competition Public Interest Employment Effects

Case Brief

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Parties

Abercom Proprietary Limited

Applicant

Branch Engineering Proprietary Limited

Respondent

Erf 616 Selby Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market in South Africa.
  2. 2 Whether the proposed transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would not alter the structure of any market, as the acquiring group has no competing interests in the relevant sector. The Commission's investigation revealed no adverse competition effects, including for third-party tenants, and no concerns were raised by affected parties. The merging parties confirmed that there would be no negative impact on employment, and no other public interest issues were identified. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition and does not raise public interest concerns. The transaction was approved unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.