Al Rayyan Holding LLC v Enel Green Power Matimba 1 s.r.l (LM197Feb21) [2021] ZACT 14 (10 March 2021)

Al Rayyan Holding LLC v Enel Green Power Matimba 1 s.r.l (LM197Feb21) [2021] ZACT 14 (10 March 2021)

The Tribunal found that the proposed merger between Al Rayyan Holding LLC and Enel Green Power Matimba 1 s.r.l does not give rise to any horizontal or vertical overlaps in South Africa, and is unlikely to result in a substantial prevention or lessening of competition in any relevant market. The transaction does not have negative employment effects, as no retrenchments are envisaged and employees will be transferred under the same terms. The merger will increase the shareholding of historically disadvantaged individuals in certain renewable energy project companies, thereby advancing black economic empowerment. No public interest concerns were identified. Accordingly, the Tribunal approved...

Citation
[2021] ZACT 14
Parties
Applicant: Al Rayyan Holding LLC; Respondent: Enel Green Power Matimba 1 s.r.l
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 March 2021
Case Number
LM197Feb21
Procedural Posture
Merger Review / Decision
Outcome
Merger approved unconditionally.
Judges
Enver Daniels, Mondo Mazwai, Yasmin Carrim
Legal Topics
Large Merger, Public Interest, Horizontal and Vertical Overlap, Employment Effects, Black Economic Empowerment
Competition Law Commercial and Corporate Large Merger Public Interest Horizontal and Vertical Overlap Employment Effects Black Economic Empowerment

Case Brief

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Parties

Al Rayyan Holding LLC

Applicant

Enel Green Power Matimba 1 s.r.l

Respondent

Procedural Posture

Merger Review / Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns under the Competition Act.
  3. 3 Whether the transaction would negatively affect employment or black economic empowerment.

Ratio Decidendi

The Tribunal found that the proposed merger between Al Rayyan Holding LLC and Enel Green Power Matimba 1 s.r.l does not give rise to any horizontal or vertical overlaps in South Africa, and is unlikely to result in a substantial prevention or lessening of competition in any relevant market. The transaction does not have negative employment effects, as no retrenchments are envisaged and employees will be transferred under the same terms. The merger will increase the shareholding of historically disadvantaged individuals in certain renewable energy project companies, thereby advancing black economic empowerment. No public interest concerns were identified. Accordingly, the Tribunal approved...

Court Disposition

Merger approved unconditionally.

Orders

  • The large merger between Al Rayyan Holding LLC and Enel Green Power Matimba 1 s.r.l is approved without conditions.