Berkshire Hathaway Inc v Alleghany Corporation (LM078Aug22) [2022] ZACT 43 (22 September 2022)

Berkshire Hathaway Inc v Alleghany Corporation (LM078Aug22) [2022] ZACT 43 (22 September 2022)

The Tribunal found that the proposed transaction would result in a combined market share in the range of 3-6% in the broad reinsurance market and 6-10% in the global non-life reinsurance market, with minimal market accretion. The evidence did not suggest that the relevant market should be defined more broadly. No competitive concerns were identified, and no third parties raised objections. The merger would not result in retrenchments or negatively affect the spread of ownership. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition or raise public interest concerns, and approved the transaction unconditionally.

Citation
[2022] ZACT 43
Parties
Applicant: Berkshire Hathaway Inc; Respondent: Alleghany Corporation
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 September 2022
Case Number
LM078Aug22
Procedural Posture
Large Merger Review / Approval
Outcome
The merger is approved unconditionally.
Judges
Yasmin Carrim, Andiswa Ndoni, Imraan Valodia
Legal Topics
Merger Control, Public Interest, Market Definition, Horizontal Overlap
Competition Law Merger Control Public Interest Market Definition Horizontal Overlap

Case Brief

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Parties

Berkshire Hathaway Inc

Applicant

Alleghany Corporation

Respondent

Procedural Posture

Large Merger Review / Approval

Legal Issues

  1. 1 Whether the proposed merger between Berkshire Hathaway Inc and Alleghany Corporation is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any public interest concerns under section 12A of the Competition Act.

Ratio Decidendi

The Tribunal found that the proposed transaction would result in a combined market share in the range of 3-6% in the broad reinsurance market and 6-10% in the global non-life reinsurance market, with minimal market accretion. The evidence did not suggest that the relevant market should be defined more broadly. No competitive concerns were identified, and no third parties raised objections. The merger would not result in retrenchments or negatively affect the spread of ownership. Accordingly, the Tribunal concluded that the merger is unlikely to substantially prevent or lessen competition or raise public interest concerns, and approved the transaction unconditionally.

Court Disposition

The merger is approved unconditionally.

Orders

  • The large merger between Berkshire Hathaway Inc and Alleghany Corporation is approved without conditions.