Community Investment Ventures Holdings (Pty) Ltd / Community Investment Ventures (Pty) Ltd and Community Investment Holdings (Pty) Ltd / CIE Group (Pty) Ltd (23/LM/Mar05) [2005] ZACT 43 (23 June 2005)

Community Investment Ventures Holdings (Pty) Ltd / Community Investment Ventures (Pty) Ltd and Community Investment Holdings (Pty) Ltd / CIE Group (Pty) Ltd (23/LM/Mar05) [2005] ZACT 43 (23 June 2005)

The Tribunal found that although the post-merger market shares in wireless connectivity and fibre optic cables would be high, the presence of low barriers to entry, product interoperability, and strong countervailing power from customers mitigated any competition concerns. Vertical relationships between the parties were insignificant and did not present foreclosure risks. The merger would not adversely affect employment and would enhance the competitiveness of historically disadvantaged firms. Consequently, the Tribunal concluded that the merger would not substantially lessen competition nor raise significant public interest concerns, and approved the transaction unconditionally.

Citation
[2005] ZACT 43
Parties
Applicant: Community Investment Ventures Holdings (Pty) Ltd; Applicant: Community Investment Ventures (Pty) Ltd; Respondent: Community Investment Holdings (Pty) Ltd; Respondent: CIE Group (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 June 2005
Case Number
23/LM/Mar05
Procedural Posture
Large Merger / Merger Clearance
Outcome
Merger unconditionally approved.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Large Merger Review, Horizontal Overlap, Vertical Relationships, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Large Merger Review Horizontal Overlap Vertical Relationships Public Interest Market Share Analysis

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 1 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Community Investment Ventures Holdings (Pty) Ltd

Applicant

Community Investment Ventures (Pty) Ltd

Applicant

Community Investment Holdings (Pty) Ltd

Respondent

CIE Group (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger will substantially prevent or lessen competition in the relevant markets.
  2. 2 Whether the transaction raises any significant public interest concerns under the Competition Act.

Ratio Decidendi

The Tribunal found that although the post-merger market shares in wireless connectivity and fibre optic cables would be high, the presence of low barriers to entry, product interoperability, and strong countervailing power from customers mitigated any competition concerns. Vertical relationships between the parties were insignificant and did not present foreclosure risks. The merger would not adversely affect employment and would enhance the competitiveness of historically disadvantaged firms. Consequently, the Tribunal concluded that the merger would not substantially lessen competition nor raise significant public interest concerns, and approved the transaction unconditionally.

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Community Investment Ventures Holdings (Pty) Ltd / Community Investment Ventures (Pty) Ltd and Community Investment Holdings (Pty) Ltd / CIE Group (Pty) Ltd is approved without conditions.