Enx Group Limited v Extract Group Limited (LM082Jun17) [2017] ZACT 46 (4 September 2017)

Enx Group Limited v Extract Group Limited (LM082Jun17) [2017] ZACT 46 (4 September 2017)

The Tribunal found that the proposed transaction would result in a merged entity with a market share of less than 10% in the private equity investment market, with negligible market share accretion. The presence of numerous competitors ensures that the merged entity would continue to face effective competition. No adverse public interest issues, including employment, were identified. Accordingly, the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition or raise any adverse public interest concerns and approved the transaction unconditionally.

Citation
[2017] ZACT 46
Parties
Applicant: Old Mutual Life Assurance Company (South Africa) Limited; Respondent: Kagiso Infrastructure Empowerment Fund
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 September 2017
Case Number
LM104Jul17
Procedural Posture
Merger Approval / Final Determination
Outcome
The proposed merger is approved unconditionally.
Judges
Andiswa Ndoni, lmraan Valodia, Fiona Tregenna
Legal Topics
Merger Control, Private Equity Investment, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Private Equity Investment Public Interest Market Share Analysis

Case Brief

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Parties

Old Mutual Life Assurance Company (South Africa) Limited

Applicant

Kagiso Infrastructure Empowerment Fund

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition of Kagiso Infrastructure Empowerment Fund by Old Mutual Life Assurance Company (South Africa) Limited is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any adverse public interest concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction would result in a merged entity with a market share of less than 10% in the private equity investment market, with negligible market share accretion. The presence of numerous competitors ensures that the merged entity would continue to face effective competition. No adverse public interest issues, including employment, were identified. Accordingly, the Tribunal concluded that the transaction is unlikely to substantially prevent or lessen competition or raise any adverse public interest concerns and approved the transaction unconditionally.

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The proposed transaction between Old Mutual Life Assurance Company (South Africa) Limited and Kagiso Infrastructure Empowerment Fund is approved unconditionally.