Digital Infrastructure Investment Holdings (Pty) Ltd v Metro Fibre Networx (Pty) Ltd (LM038Jul21) [2021] ZACT 55 (26 August 2021)

Digital Infrastructure Investment Holdings (Pty) Ltd v Metro Fibre Networx (Pty) Ltd (LM038Jul21) [2021] ZACT 55 (26 August 2021)

The Tribunal found that the proposed merger between Digital Infrastructure Investment Holdings (Pty) Ltd and Metro Fibre Networx (Pty) Ltd would not result in any substantial prevention or lessening of competition in the relevant fibre network markets. The transaction does not create vertical or horizontal overlaps, and MetroFibre will continue to face competition from other market participants. The merging parties provided assurances that there would be no job losses and that BEE ownership would remain at 30%, satisfying public interest requirements. The Tribunal concluded that the merger raises no competition or public interest concerns and approved the transaction unconditionally.

Citation
[2021] ZACT 55
Parties
Applicant: Digital Infrastructure Investment Holdings (Pty) Ltd; Respondent: Metro Fibre Networx (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
26 August 2021
Case Number
LM038Jul21
Procedural Posture
Merger Application / Merger Approval
Outcome
Merger approved unconditionally.
Judges
E Daniels, Y Carrim, H Cheadle
Legal Topics
Large Merger, Public Interest, Market Structure, Bee Ownership, Fibre Networks
Competition Law Large Merger Public Interest Market Structure Bee Ownership Fibre Networks

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Parties

Digital Infrastructure Investment Holdings (Pty) Ltd

Applicant

Metro Fibre Networx (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Merger Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including employment and BEE ownership requirements.

Ratio Decidendi

The Tribunal found that the proposed merger between Digital Infrastructure Investment Holdings (Pty) Ltd and Metro Fibre Networx (Pty) Ltd would not result in any substantial prevention or lessening of competition in the relevant fibre network markets. The transaction does not create vertical or horizontal overlaps, and MetroFibre will continue to face competition from other market participants. The merging parties provided assurances that there would be no job losses and that BEE ownership would remain at 30%, satisfying public interest requirements. The Tribunal concluded that the merger raises no competition or public interest concerns and approved the transaction unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The merger between Digital Infrastructure Investment Holdings (Pty) Ltd and Metro Fibre Networx (Pty) Ltd is approved in terms of section 16(2)(a) of the Competition Act, 1998.
  • A Merger Clearance Certificate is to be issued in terms of Competition Tribunal Rule 35(5)(a).