Ethos Private Equity Fund VI v Nampak Corrugated and Nampak Tissue Business Divisions of Nampak Products Limited (020412) [2015] ZACT 31 (1 April 2015)

Ethos Private Equity Fund VI v Nampak Corrugated and Nampak Tissue Business Divisions of Nampak Products Limited (020412) [2015] ZACT 31 (1 April 2015)

The Tribunal found that the proposed merger between Ethos Private Equity Fund VI and the Nampak Corrugated and Nampak Tissue divisions would not substantially prevent or lessen competition in any relevant market. There were no horizontal overlaps and the identified vertical relationship did not raise foreclosure concerns. Regarding public interest, specifically employment, the Tribunal accepted the merging parties' undertaking that no retrenchments would occur except for two executive positions and that all other employees would be transferred on terms no less favourable. The Tribunal found no evidence to contradict these submissions and concluded that no public interest issues arose from...

Citation
[2015] ZACT 31
Parties
Applicant: Ethos Private Equity Fund VI; Respondent: Nampak Corrugated and Nampak Tissue Business Divisions of Nampak Products Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 April 2015
Case Number
020412
Procedural Posture
Merger Application / Approval
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Medi Mokuena, Imraan Valodia
Legal Topics
Merger Review, Public Interest, Employment Effects, Vertical Relationships
Competition Law Merger Review Public Interest Employment Effects Vertical Relationships

Case Brief

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Parties

Ethos Private Equity Fund VI

Applicant

Nampak Corrugated and Nampak Tissue Business Divisions of Nampak Products Limited

Respondent

Procedural Posture

Merger Application / 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 proposed merger raises public interest concerns, specifically regarding employment.
  3. 3 Whether any conditions should be imposed on the approval of the merger.

Ratio Decidendi

The Tribunal found that the proposed merger between Ethos Private Equity Fund VI and the Nampak Corrugated and Nampak Tissue divisions would not substantially prevent or lessen competition in any relevant market. There were no horizontal overlaps and the identified vertical relationship did not raise foreclosure concerns. Regarding public interest, specifically employment, the Tribunal accepted the merging parties' undertaking that no retrenchments would occur except for two executive positions and that all other employees would be transferred on terms no less favourable. The Tribunal found no evidence to contradict these submissions and concluded that no public interest issues arose from...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Ethos Private Equity Fund VI and the Nampak Corrugated and Nampak Tissue divisions of Nampak Products Limited is approved without conditions.
  • No retrenchments are permitted as a result of the merger except for two executive positions.