Cape of Good Hope Bank Limited and Division of Nedcor Investment Bank Limited (18/LM/Mar02) [2002] ZACT 29 (26 April 2002)

Cape of Good Hope Bank Limited and Division of Nedcor Investment Bank Limited (18/LM/Mar02) [2002] ZACT 29 (26 April 2002)

The Tribunal found that the relevant market is the provision of commercial and industrial property loans and mortgages below R5 million across South Africa. Although precise market share data for this segment was unavailable, the data for the broader market indicated that CGHB's share is minimal (1.68%). The Tribunal concluded that the transaction is an internal restructuring within the Nedcor Group, with ultimate control remaining unchanged. Therefore, the merger does not alter the competitive position in the relevant market. There are no public interest concerns that would justify prohibiting or conditioning the merger. The transaction is approved unconditionally.

Citation
[2002] ZACT 29
Parties
Applicant: Cape of Good Hope Bank Limited; Respondent: A division of Nedcor Investment Bank Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 April 2002
Case Number
18/LM/Mar02
Procedural Posture
Large Merger Review / Merger Clearance Decision
Outcome
Merger approved unconditionally.
Judges
N.M. Manoim, U. Bhoola, P. Maponya
Legal Topics
Large Merger Review, Market Definition, Market Share Analysis, Public Interest, Internal Restructuring
Competition Law Banking and Finance Large Merger Review Market Definition Market Share Analysis Public Interest Internal Restructuring

Case Brief

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Parties

Cape of Good Hope Bank Limited

Applicant

A division of Nedcor Investment Bank Limited

Respondent

Procedural Posture

Large Merger Review / Merger Clearance Decision

Legal Issues

  1. 1 Does the proposed merger substantially lessen or prevent competition in the relevant market?
  2. 2 Is there any public interest concern that would justify prohibiting or conditioning the merger?
  3. 3 Does the transaction alter the competitive position in the market for commercial and industrial property loans and mortgages below R5 million?

Ratio Decidendi

The Tribunal found that the relevant market is the provision of commercial and industrial property loans and mortgages below R5 million across South Africa. Although precise market share data for this segment was unavailable, the data for the broader market indicated that CGHB's share is minimal (1.68%). The Tribunal concluded that the transaction is an internal restructuring within the Nedcor Group, with ultimate control remaining unchanged. Therefore, the merger does not alter the competitive position in the relevant market. There are no public interest concerns that would justify prohibiting or conditioning the merger. The transaction is approved unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Cape of Good Hope Bank Limited and a division of Nedcor Investment Bank Limited is approved without conditions.