Competition Commission v WBHO Construction (Pty) Ltd and Another (69/AM/Oct10) [2010] ZACT 77 (10 November 2010)

Competition Commission v WBHO Construction (Pty) Ltd and Another (69/AM/Oct10) [2010] ZACT 77 (10 November 2010)

The Tribunal confirmed that WBHO Construction and Edwin Construction implemented an intermediate merger without prior notification and approval, in contravention of section 13A(3) of the Competition Act. Both parties admitted the contravention and accepted liability for administrative penalties. The Tribunal accepted the consent agreement, which included undertakings to refrain from future contraventions and to continue compliance programmes. The penalties imposed were R1,000,000 for WBHO and R100,000 for Edwin, payable within seven days of confirmation. The order concludes all proceedings between the Commission and the respondents regarding this contravention.

Citation
[2010] ZACT 77
Parties
Applicant: Competition Commission; Respondent: WBHO Construction (Pty) Ltd; Respondent: Edwin Construction (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 November 2010
Case Number
69/AM/Oct10
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalties imposed and compliance undertakings accepted.
Judges
N Manoim, A Wessels, Y Carrim
Legal Topics
Merger Notification, Prior Implementation, Administrative Penalty, Intermediate Merger, Change of Control
Competition Law Merger Notification Prior Implementation Administrative Penalty Intermediate Merger Change of Control

Case Brief

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Parties

Competition Commission

Applicant

WBHO Construction (Pty) Ltd

Respondent

Edwin Construction (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Did the respondents implement a notifiable intermediate merger without prior notification and approval by the Competition Commission, in contravention of section 13A(3) of the Competition Act?
  2. 2 Are the respondents liable to pay an administrative penalty for the contravention?

Ratio Decidendi

The Tribunal confirmed that WBHO Construction and Edwin Construction implemented an intermediate merger without prior notification and approval, in contravention of section 13A(3) of the Competition Act. Both parties admitted the contravention and accepted liability for administrative penalties. The Tribunal accepted the consent agreement, which included undertakings to refrain from future contraventions and to continue compliance programmes. The penalties imposed were R1,000,000 for WBHO and R100,000 for Edwin, payable within seven days of confirmation. The order concludes all proceedings between the Commission and the respondents regarding this contravention.

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalties imposed and compliance undertakings accepted.

Orders

  • The consent agreement between the Competition Commission, WBHO Construction (Pty) Ltd, and Edwin Construction (Pty) Ltd is confirmed as an order of the Tribunal.
  • WBHO Construction (Pty) Ltd must pay an administrative penalty of R1,000,000 within seven days.