Actom (Pty) Ltd v Savcio Holdings (Pty) Ltd (70/LM/Aug11) [2012] ZACT 29 (13 February 2012)

Actom (Pty) Ltd v Savcio Holdings (Pty) Ltd (70/LM/Aug11) [2012] ZACT 29 (13 February 2012)

The Tribunal found that the merger between Actom (Pty) Ltd and Savcio Holdings (Pty) Ltd could be approved subject to conditions designed to prevent anti-competitive effects and protect public interest. The conditions included removal of cross-directorships between Actom and Acton Repair Services, continued supply of commutators to Transnet Rail Engineering at existing prices and quality, continued supply of copper wire products to the open market at current terms, and monitoring and reporting obligations to the Competition Commission. The Tribunal determined that these conditions were necessary and sufficient to address concerns regarding market foreclosure, pricing, and supply...

Citation
[2012] ZACT 29
Parties
Applicant: Actom (Pty) Ltd; Respondent: Savcio Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 February 2012
Case Number
70/LM/Aug11
Procedural Posture
Large Merger Application / Merger Approval Order
Outcome
Merger conditionally approved subject to specified conditions.
Judges
Y Carrim, A Wessels, T Madima
Legal Topics
Merger Control, Conditional Approval, Market Access, Supply Obligations
Competition Law Commercial and Corporate Merger Control Conditional Approval Market Access Supply Obligations

Case Brief

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Parties

Actom (Pty) Ltd

Applicant

Savcio Holdings (Pty) Ltd

Respondent

Procedural Posture

Large Merger Application / Merger Approval Order

Legal Issues

  1. 1 Whether the proposed large merger between Actom (Pty) Ltd and Savcio Holdings (Pty) Ltd should be approved subject to conditions.
  2. 2 Whether the merger would substantially prevent or lessen competition in relevant markets.
  3. 3 What conditions are necessary to address competition and public interest concerns.

Ratio Decidendi

The Tribunal found that the merger between Actom (Pty) Ltd and Savcio Holdings (Pty) Ltd could be approved subject to conditions designed to prevent anti-competitive effects and protect public interest. The conditions included removal of cross-directorships between Actom and Acton Repair Services, continued supply of commutators to Transnet Rail Engineering at existing prices and quality, continued supply of copper wire products to the open market at current terms, and monitoring and reporting obligations to the Competition Commission. The Tribunal determined that these conditions were necessary and sufficient to address concerns regarding market foreclosure, pricing, and supply...

Court Disposition

Merger conditionally approved subject to specified conditions.

Orders

  • The large merger between Actom (Pty) Ltd and Savcio Holdings (Pty) Ltd is approved subject to the conditions set out in the order.
  • All common directors between Acton Repair Services (Pty) Ltd and Actom (Pty) Ltd have been removed and there shall not be any common directors between these entities in future.