Curro Holdings Ltd v Rudell Holdings Trust (Pty) Ltd (109/LM/Dec11) [2012] ZACT 43 (29 June 2012)

Curro Holdings Ltd v Rudell Holdings Trust (Pty) Ltd (109/LM/Dec11) [2012] ZACT 43 (29 June 2012)

The Tribunal found that although there is a horizontal overlap in the provision of independent education between Curro Holdings Ltd and Woodhill College, the parties operate at different levels of the market, with Woodhill College at the upper end and Curro at the middle end. The average difference in school fees is approximately 44%. Even under a worst-case scenario, the combined post-merger market shares (24% for primary schools, 15% for secondary schools, and 25% for combined schools) do not result in a substantial lessening of competition, as significant competitors remain in the Pretoria East area. Parents have countervailing power and can switch schools, and no concerns were raised...

Citation
[2012] ZACT 43
Parties
Applicant: Curro Holdings Ltd; Respondent: Rudell Holdings Trust (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 June 2012
Case Number
109/LM/Dec11
Procedural Posture
Merger Control / Approval
Outcome
Merger approved unconditionally.
Judges
Yasmin Carrim, Medi Mokuena, Takalani Madima
Legal Topics
Merger Control, Horizontal Overlap, Market Share Analysis, Public Interest, Countervailing Power
Competition Law Merger Control Horizontal Overlap Market Share Analysis Public Interest Countervailing Power

Case Brief

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Parties

Curro Holdings Ltd

Applicant

Rudell Holdings Trust (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition will substantially prevent or lessen competition in the market for independent education in Pretoria East.
  2. 2 Whether the transaction raises any public interest concerns, particularly regarding employment.

Ratio Decidendi

The Tribunal found that although there is a horizontal overlap in the provision of independent education between Curro Holdings Ltd and Woodhill College, the parties operate at different levels of the market, with Woodhill College at the upper end and Curro at the middle end. The average difference in school fees is approximately 44%. Even under a worst-case scenario, the combined post-merger market shares (24% for primary schools, 15% for secondary schools, and 25% for combined schools) do not result in a substantial lessening of competition, as significant competitors remain in the Pretoria East area. Parents have countervailing power and can switch schools, and no concerns were raised...

Court Disposition

Merger approved unconditionally.

Orders

  • The acquisition by Curro Holdings Ltd of the Rudell Holdings Trust, in respect of Woodhill College (Pty) Ltd and Woodhill College Property Holdings (Pty) Ltd, is approved unconditionally.