ABSA Capital Private Equity Fund 1 v Parchment Trading 72 (Pty) Ltd (52/LM/Jun09) [2009] ZACT 63 (8 October 2009)

ABSA Capital Private Equity Fund 1 v Parchment Trading 72 (Pty) Ltd (52/LM/Jun09) [2009] ZACT 63 (8 October 2009)

The Tribunal found that there is no overlap between the activities of the merging parties, as the acquiring firm does not have investments in the markets where the target firm is active. The transaction is structured to remove ownership and control linkages, with ABSA Capital's shareholding in BridgeCo being transferred to the Fund. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any market and that there are no public interest concerns. Accordingly, the merger was approved unconditionally.

Citation
[2009] ZACT 63
Parties
Applicant: ABSA Capital Private Equity Fund 1; Respondent: Parchment Trading 72 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 October 2009
Case Number
52/LM/Jun09
Procedural Posture
Merger Control / Merger Approval
Outcome
Merger approved unconditionally.
Judges
D Lewis, N Manoim, M Mokuena
Legal Topics
Merger Control, Substantial Lessening of Competition, Public Interest, Shareholding Transfer
Competition Law Merger Control Substantial Lessening of Competition Public Interest Shareholding Transfer

Case Brief

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Parties

ABSA Capital Private Equity Fund 1

Applicant

Parchment Trading 72 (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any market.
  2. 2 Whether there are any public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that there is no overlap between the activities of the merging parties, as the acquiring firm does not have investments in the markets where the target firm is active. The transaction is structured to remove ownership and control linkages, with ABSA Capital's shareholding in BridgeCo being transferred to the Fund. The Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any market and that there are no public interest concerns. Accordingly, the merger was approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between ABSA Capital Private Equity Fund 1 and Parchment Trading 72 (Pty) Ltd is approved without conditions.