Chase Manhattan Corporation and JP Morgan and Company Incorporated (99/LM/Dec00) [2000] ZACT 52 (21 December 2000)

Chase Manhattan Corporation and JP Morgan and Company Incorporated (99/LM/Dec00) [2000] ZACT 52 (21 December 2000)

The Tribunal confined its assessment to the non-banking activities of the merging parties in South Africa, in line with the Supreme Court of Appeal's interpretation of section 3(1)(d) of the Competition Act. It found that in the corporate finance services market, JP Morgan is a new entrant with a negligible market share, and Chase Manhattan's share is also limited. In the bond trading market, the parties operate in different segments with minimal overlap. Both markets are highly competitive, and clients possess countervailing power. The Tribunal concluded that the merger would not result in the prevention or lessening of competition in any relevant market.

Citation
[2000] ZACT 52
Parties
Applicant: The Chase Manhattan Corporation; Respondent: JP Morgan and Company Incorporated
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 December 2000
Case Number
99/LM/Dec00
Procedural Posture
Large Merger Approval / Merger Clearance Certificate Issued
Outcome
Merger approved without conditions.
Judges
N.M. Manoim, D.H. Lewis, D. Terblanche
Legal Topics
Large Merger Review, Market Definition, Public Regulation Exclusion, Corporate Finance Services, Bond Trading
Competition Law Banking and Finance Large Merger Review Market Definition Public Regulation Exclusion Corporate Finance Services Bond Trading

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 3 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

The Chase Manhattan Corporation

Applicant

JP Morgan and Company Incorporated

Respondent

Procedural Posture

Large Merger Approval / Merger Clearance Certificate Issued

Legal Issues

  1. 1 Whether the merger between Chase Manhattan and JP Morgan will substantially prevent or lessen competition in the relevant South African markets.
  2. 2 Whether the merger falls within the scope of the Competition Act given the public regulation of the banking industry.
  3. 3 What are the relevant product and geographic markets affected by the merger.

Ratio Decidendi

The Tribunal confined its assessment to the non-banking activities of the merging parties in South Africa, in line with the Supreme Court of Appeal's interpretation of section 3(1)(d) of the Competition Act. It found that in the corporate finance services market, JP Morgan is a new entrant with a negligible market share, and Chase Manhattan's share is also limited. In the bond trading market, the parties operate in different segments with minimal overlap. Both markets are highly competitive, and clients possess countervailing power. The Tribunal concluded that the merger would not result in the prevention or lessening of competition in any relevant market.

Court Disposition

Merger approved without conditions.

Orders

  • The merger between The Chase Manhattan Corporation and JP Morgan and Company Incorporated is approved without conditions in terms of section 14(3)(a) of the Competition Act.