African Equity Empowerment Investment Limited v SAAB Grintek Technologies (Pty) Ltd (LM233Jan19) [2019] ZACT 7 (18 February 2019)

African Equity Empowerment Investment Limited v SAAB Grintek Technologies (Pty) Ltd (LM233Jan19) [2019] ZACT 7 (18 February 2019)

The Tribunal found that the proposed transaction does not give rise to any horizontal or vertical overlaps, as the acquiring group does not have interests in entities providing the same products or services as the target firm, nor is there any pre-existing business relationship between the merging parties. The...

Source-derived case information.

Citation
[2019] ZACT 7
Parties
Applicant: African Equity Empowerment Investment Limited; Respondent: SAAB Grintek Technologies (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 February 2019
Case Number
LM233Jan19
Procedural Posture
Merger Approval / Decision on Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Y Carrim, M Mazwai, I Valodia
Legal Topics
Merger Control, Public Interest, Market Structure
Competition Law Merger Control Public Interest Market Structure

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Parties

African Equity Empowerment Investment Limited

Applicant

SAAB Grintek Technologies (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Decision on Approval

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed merger raises any public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction does not give rise to any horizontal or vertical overlaps, as the acquiring group does not have interests in entities providing the same products or services as the target firm, nor is there any pre-existing business relationship between the merging parties. The transaction would not alter the structure of any relevant market or result in accretion of market share. Furthermore, no public interest concerns were identified. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition in any relevant market and does not raise public interest issues. The merger was therefore approved...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction is approved unconditionally.