Aveng (Africa) Ltd v Keyplan (Pty) Ltd (98/LM/Sep08) [2008] ZACT 87; [2008] 2 CPLR 225 (CT) (20 October 2008)

Aveng (Africa) Ltd v Keyplan (Pty) Ltd (98/LM/Sep08) [2008] ZACT 87; [2008] 2 CPLR 225 (CT) (20 October 2008)

The Tribunal found that the overlap between the merging parties in the water and wastewater treatment services market and the gaseous emission control market was limited. Aveng Africa was not a significant player in the water and wastewater treatment market, and Keyplan operated in specialised segments. The presence of both parties in the gaseous emission control market was minimal. In the civil construction market, although Aveng Africa held a substantial share, the remaining market was sufficiently competitive, and the merger would not result in input or customer foreclosure. The geographic market was determined to be national. No public interest concerns were identified. The Tribunal...

Citation
[2008] ZACT 87
Parties
Applicant: Aveng (Africa) Ltd; Respondent: Keyplan (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 October 2008
Case Number
98/LM/Sep08
Procedural Posture
Merger Clearance / Decision on Unconditional Approval
Outcome
Merger unconditionally approved.
Judges
D Lewis, Y Carrim, N Manoim
Legal Topics
Merger Clearance, Vertical Integration, Market Definition, Input Foreclosure, Customer Foreclosure
Competition Law Commercial and Corporate Merger Clearance Vertical Integration Market Definition Input Foreclosure Customer Foreclosure

Case Brief

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Parties

Aveng (Africa) Ltd

Applicant

Keyplan (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Decision on Unconditional Approval

Legal Issues

  1. 1 Whether the proposed merger between Aveng (Africa) Ltd and Keyplan (Pty) Ltd is likely to substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any public interest concerns.
  3. 3 Whether the merger gives rise to vertical integration concerns, including input and customer foreclosure.

Ratio Decidendi

The Tribunal found that the overlap between the merging parties in the water and wastewater treatment services market and the gaseous emission control market was limited. Aveng Africa was not a significant player in the water and wastewater treatment market, and Keyplan operated in specialised segments. The presence of both parties in the gaseous emission control market was minimal. In the civil construction market, although Aveng Africa held a substantial share, the remaining market was sufficiently competitive, and the merger would not result in input or customer foreclosure. The geographic market was determined to be national. No public interest concerns were identified. The Tribunal...

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Aveng (Africa) Ltd and Keyplan (Pty) Ltd is unconditionally approved.
  • No conditions are imposed on the approval of the transaction.