Ethos Fund VII v Echotel Proprietary Limited (LM230Jan19) [2019] ZACT 5 (18 February 2019)

Ethos Fund VII v Echotel Proprietary Limited (LM230Jan19) [2019] ZACT 5 (18 February 2019)

The Tribunal found that the transaction does not result in any horizontal or vertical overlaps, as Ethos and its group do not have interests in businesses that compete with Echotel, nor is there any pre-existing business relationship. The transaction would not adversely affect employment, and no other public interest concerns were identified. The acquisition of joint control by Ethos Fund VII is unlikely to substantially prevent or lessen competition in any relevant market. Accordingly, the Tribunal unconditionally approved the transaction.

Citation
[2019] ZACT 5
Parties
Applicant: Ethos Fund VII; Respondent: Echotel Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 February 2019
Case Number
LM230Jan19
Procedural Posture
Merger Control / Approval of Merger
Outcome
Merger unconditionally approved.
Judges
Y Carrim, M Mazwai, I Valodia
Legal Topics
Merger Control, Joint Control, Public Interest, Horizontal Overlap, Vertical Overlap
Competition Law Merger Control Joint Control Public Interest Horizontal Overlap Vertical Overlap

Case Brief

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Parties

Ethos Fund VII

Applicant

Echotel Proprietary Limited

Respondent

Procedural Posture

Merger Control / Approval of Merger

Legal Issues

  1. 1 Whether the proposed acquisition by Ethos Fund VII of joint control over Echotel Proprietary Limited would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse effects on employment.

Ratio Decidendi

The Tribunal found that the transaction does not result in any horizontal or vertical overlaps, as Ethos and its group do not have interests in businesses that compete with Echotel, nor is there any pre-existing business relationship. The transaction would not adversely affect employment, and no other public interest concerns were identified. The acquisition of joint control by Ethos Fund VII is unlikely to substantially prevent or lessen competition in any relevant market. Accordingly, the Tribunal unconditionally approved the transaction.

Court Disposition

Merger unconditionally approved.

Orders

  • The transaction in which Ethos Fund VII acquires joint control of Echotel Proprietary Limited is unconditionally approved.