Corvest 12 (Pty) Ltd v The Alternative Power (Pty) Ltd (LM0138Oct20) [2020] ZACT 44 (2 December 2020)

Corvest 12 (Pty) Ltd v The Alternative Power (Pty) Ltd (LM0138Oct20) [2020] ZACT 44 (2 December 2020)

The Tribunal found that Corvest 12's acquisition of control over Alternative Power, pursuant to section 12(2)(g) of the Competition Act, did not result in a horizontal overlap or alter the structure of the relevant market, as Corvest 12 does not compete with Alternative Power nor does it have interests in firms providing similar products. The transaction was purely a financial investment and did not raise any public interest concerns, including employment issues. Accordingly, the Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition and approved the transaction unconditionally.

Citation
[2020] ZACT 44
Parties
Applicant: Corvest 12 (Pty) Ltd; Respondent: The Alternative Power (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 December 2020
Case Number
LM0138Oct20
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
M Mazwai, E Daniels, A Ndoni
Legal Topics
Merger Control, Section 12 Competition Act, Public Interest, Horizontal Overlap
Competition Law Merger Control Section 12 Competition Act Public Interest Horizontal Overlap

Case Brief

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Parties

Corvest 12 (Pty) Ltd

Applicant

The Alternative Power (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the acquisition of control by Corvest 12 over Alternative Power constitutes a notifiable merger under section 12(2)(g) of the Competition Act.
  2. 2 Whether the proposed transaction is likely to substantially prevent or lessen competition in any relevant market.
  3. 3 Whether any public interest concerns arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that Corvest 12's acquisition of control over Alternative Power, pursuant to section 12(2)(g) of the Competition Act, did not result in a horizontal overlap or alter the structure of the relevant market, as Corvest 12 does not compete with Alternative Power nor does it have interests in firms providing similar products. The transaction was purely a financial investment and did not raise any public interest concerns, including employment issues. Accordingly, the Tribunal concluded that the merger was unlikely to substantially prevent or lessen competition and approved the transaction unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.