Actis International Limited v Abraaj Investment Management Limited (in provisional liquidation) (LM222Nov18) [2019] ZACT 11; [2020] 2 CPLR 734 (CT) (7 February 2019)

Actis International Limited v Abraaj Investment Management Limited (in provisional liquidation) (LM222Nov18) [2019] ZACT 11; [2020] 2 CPLR 734 (CT) (7 February 2019)

The Tribunal found that the proposed transaction does not give rise to a horizontal overlap, as Actis International has no interests in the private healthcare sector in South Africa. The transaction is therefore unlikely to substantially prevent or lessen competition in any market. Regarding public interest, the only employment effect identified was the likely retrenchment of two employees from Abraaj Investment, which the Commission considered insubstantial due to the provisional liquidation of Abraaj Investment, the skills of the affected employees, and ongoing negotiations for voluntary severance packages. No other public interest concerns were identified. Accordingly, the Tribunal...

Citation
[2019] ZACT 11
Parties
Applicant: Actis International Limited; Respondent: Abraaj Investment Management Limited (in provisional liquidation)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 February 2019
Case Number
LM222Nov18
Procedural Posture
Merger Approval / Reasons for Decision
Outcome
The proposed transaction is approved unconditionally.
Judges
Anton Roskam, Andiswa Ndoni, Medi Mokuena
Legal Topics
Merger Control, Private Equity, Public Interest, Retrenchment, Horizontal Overlap
Competition Law Commercial and Corporate Merger Control Private Equity Public Interest Retrenchment Horizontal Overlap

Case Brief

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Parties

Actis International Limited

Applicant

Abraaj Investment Management Limited (in provisional liquidation)

Respondent

Procedural Posture

Merger Approval / Reasons for Decision

Legal Issues

  1. 1 Whether the proposed transaction will substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that the proposed transaction does not give rise to a horizontal overlap, as Actis International has no interests in the private healthcare sector in South Africa. The transaction is therefore unlikely to substantially prevent or lessen competition in any market. Regarding public interest, the only employment effect identified was the likely retrenchment of two employees from Abraaj Investment, which the Commission considered insubstantial due to the provisional liquidation of Abraaj Investment, the skills of the affected employees, and ongoing negotiations for voluntary severance packages. No other public interest concerns were identified. Accordingly, the Tribunal...

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The proposed transaction between Actis International Limited and Abraaj Investment Management Limited (in provisional liquidation) is approved unconditionally.