Barclays Plc and ABN Amro Holding N.V. (60/LM/JUN07) [2007] ZACT 53 (13 August 2007)

Barclays Plc and ABN Amro Holding N.V. (60/LM/JUN07) [2007] ZACT 53 (13 August 2007)

The Tribunal found that the proposed merger between Barclays PLC and ABN AMRO Holding N.V. would have a negligible effect on competition in the South African market. Both parties have limited overlap in the provision of financial services and corporate banking, with ABN AMRO's local operations being minimal. The post-merger market share in South Africa would remain low, and there are no public interest concerns. The Tribunal concluded that the transaction is unlikely to result in a substantial lessening or prevention of competition and approved the merger unconditionally.

Citation
[2007] ZACT 53
Parties
Applicant: Barclays PLC; Respondent: ABN AMRO Holding N.V
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 August 2007
Case Number
60/LM/JUN07
Procedural Posture
Merger Application / Merger Clearance
Outcome
Merger approved unconditionally.
Judges
DH Lewis, N Manoim, M Mokuena
Legal Topics
Merger Clearance, Corporate Banking Services, Market Share Analysis
Competition Law Banking and Finance Merger Clearance Corporate Banking Services Market Share Analysis

Case Brief

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Parties

Barclays PLC

Applicant

ABN AMRO Holding N.V

Respondent

Procedural Posture

Merger Application / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger between Barclays PLC and ABN AMRO Holding N.V. is likely to substantially lessen or prevent competition in the South African market.
  2. 2 Whether there are any public interest concerns arising from the merger.

Ratio Decidendi

The Tribunal found that the proposed merger between Barclays PLC and ABN AMRO Holding N.V. would have a negligible effect on competition in the South African market. Both parties have limited overlap in the provision of financial services and corporate banking, with ABN AMRO's local operations being minimal. The post-merger market share in South Africa would remain low, and there are no public interest concerns. The Tribunal concluded that the transaction is unlikely to result in a substantial lessening or prevention of competition and approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Barclays PLC and ABN AMRO Holding N.V. is approved without conditions.