Brookfield Asset Management Inc. v TerraForm Global Inc. (LM079Jun17) [2017] ZACT 55 (18 August 2017)

Brookfield Asset Management Inc. v TerraForm Global Inc. (LM079Jun17) [2017] ZACT 55 (18 August 2017)

The Tribunal found that there was no geographic overlap between Brookfield and TerraForm in the South African renewable energy market, as Brookfield did not own or operate any solar or wind power plants in South Africa prior to the transaction. The Commission's investigation confirmed that the merger would be Brookfield's first investment in the sector locally, and thus the transaction would not substantially prevent or lessen competition. Furthermore, the Tribunal accepted the parties' submissions and the Commission's findings that no job losses, retrenchments, or redundancies would result from the merger, and that no other public interest concerns were raised. Accordingly, the Tribunal...

Citation
[2017] ZACT 55
Parties
Applicant: Brookfield Asset Management Inc.; Respondent: TerraForm Global Inc.
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 August 2017
Case Number
LM079Jun17
Procedural Posture
Large Merger / Approval
Outcome
The proposed merger between Brookfield Asset Management Inc. and TerraForm Global Inc. was unconditionally approved.
Judges
Yasmin Carrim, Anton Roskam, Enver Daniels
Legal Topics
Large Merger Review, Horizontal Overlap, Public Interest, Renewable Energy Market
Competition Law Commercial and Corporate Large Merger Review Horizontal Overlap Public Interest Renewable Energy Market

Case Brief

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Parties

Brookfield Asset Management Inc.

Applicant

TerraForm Global Inc.

Respondent

Procedural Posture

Large Merger / Approval

Legal Issues

  1. 1 Whether the proposed merger between Brookfield and TerraForm is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed merger raises any adverse public interest concerns, including employment effects.

Ratio Decidendi

The Tribunal found that there was no geographic overlap between Brookfield and TerraForm in the South African renewable energy market, as Brookfield did not own or operate any solar or wind power plants in South Africa prior to the transaction. The Commission's investigation confirmed that the merger would be Brookfield's first investment in the sector locally, and thus the transaction would not substantially prevent or lessen competition. Furthermore, the Tribunal accepted the parties' submissions and the Commission's findings that no job losses, retrenchments, or redundancies would result from the merger, and that no other public interest concerns were raised. Accordingly, the Tribunal...

Court Disposition

The proposed merger between Brookfield Asset Management Inc. and TerraForm Global Inc. was unconditionally approved.

Orders

  • The merger is approved unconditionally.