EOH Mthombo Proprietary Limited v Price Waterhouse Coopers Combined Systems (Pty) Ltd (LM159Nov16) [2017] ZACT 28 (23 June 2017)

EOH Mthombo Proprietary Limited v Price Waterhouse Coopers Combined Systems (Pty) Ltd (LM159Nov16) [2017] ZACT 28 (23 June 2017)

The Tribunal found that, although the merged entity would have a significant market share in the provision of fixed asset management services, the market is characterized by tender processes and the presence of credible competitors. The Commission's supplementary investigation showed that market shares fluctuate due to large contracts and that government departments increasingly provide asset management services in-house or use alternative systems. No evidence was presented of likely substantial prevention or lessening of competition, and no public interest concerns were identified. The Tribunal therefore approved the merger unconditionally.

Citation
[2017] ZACT 28
Parties
Applicant: EOH Mthombo Proprietary Limited; Respondent: PricewaterhouseCoopers Combined Systems (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 June 2017
Case Number
LM159Nov16
Procedural Posture
Merger Review / Approval and Reasons
Outcome
Merger approved unconditionally.
Judges
AW Wessels, M Mokuena, A Ndoni
Legal Topics
Merger Control, Market Definition, Public Interest, Barriers to Entry
Competition Law Commercial and Corporate Merger Control Market Definition Public Interest Barriers to Entry

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Parties

EOH Mthombo Proprietary Limited

Applicant

PricewaterhouseCoopers Combined Systems (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Approval and Reasons

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in the relevant market(s).
  2. 2 Whether any public interest concerns arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that, although the merged entity would have a significant market share in the provision of fixed asset management services, the market is characterized by tender processes and the presence of credible competitors. The Commission's supplementary investigation showed that market shares fluctuate due to large contracts and that government departments increasingly provide asset management services in-house or use alternative systems. No evidence was presented of likely substantial prevention or lessening of competition, and no public interest concerns were identified. The Tribunal therefore approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction is approved without conditions.