Firstrand Bank Limited v Kulula Air (Pty) Ltd (LM089Oct21) [2021] ZACT 103 (7 December 2021)
- Citation
- [2021] ZACT 103
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Competition Tribunal
- Posture
- Merger Control / Tribunal Decision
- Case number
- LM089Oct21
More details
- Court
- Competition Tribunal
- Posture
- Merger Control / Tribunal Decision
- Case number
- LM089Oct21
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Tribunal found that the proposed acquisition of the Slow Lounge business by FirstRand Bank Limited from Kulula Air (Pty) Ltd does not substantially prevent or lessen competition in the market for airport lounge services. The transaction does not raise any significant public interest concerns. The Tribunal concluded that the merger should be approved without conditions.
Court disposition
Merger approved unconditionally.
Orders
- The large merger between FirstRand Bank Limited and Kulula Air (Pty) Ltd is approved without conditions.
02
Material facts
Parties
Firstrand Bank Limited
ApplicantKulula Air (Pty) Ltd
Respondent03
Procedural history
Posture
Merger Control / Tribunal Decision
04
Questions and positions
Legal issues
- 01
Whether the proposed acquisition of the Slow Lounge business by FirstRand Bank Limited from Kulula Air (Pty) Ltd raises competition concerns in the relevant market.
- 02
Whether the merger should be approved with or without conditions.
Party arguments
- Applicant
- FirstRand Bank Limited submitted that the acquisition of the Slow Lounge business would not substantially prevent or lessen competition in the relevant market for airport lounge services. The applicant argued that the transaction would not result in any negative public interest effects and that the relevant market is competitive with several alternative providers.
- Respondent
- Kulula Air (Pty) Ltd did not oppose the merger and confirmed that the transaction would not negatively affect competition or public interest. The respondent supported the unconditional approval of the merger.
05
Court’s reasoning
Legal principles
- 01
Competition Act 89 of 1998
A merger may be approved unconditionally if it does not substantially prevent or lessen competition and does not raise significant public interest concerns.
- 02
Competition Act 89 of 1998
The assessment of a large merger requires consideration of market structure, potential anti-competitive effects, and public interest factors.
06
Ratio, limits and disposition
Ratio decidendi
The Tribunal found that the proposed acquisition of the Slow Lounge business by FirstRand Bank Limited from Kulula Air (Pty) Ltd does not substantially prevent or lessen competition in the market for airport lounge services. The transaction does not raise any significant public interest concerns. The Tribunal concluded that the merger should be approved without conditions.
Obiter and limits
- The Tribunal noted that the airport lounge market remains competitive and that the transaction is unlikely to result in foreclosure of competitors.
- The Tribunal observed that the merger may enhance consumer choice and service quality in airport lounges.
Court disposition
Merger approved unconditionally.
- The large merger between FirstRand Bank Limited and Kulula Air (Pty) Ltd is approved without conditions.
Source and reliance status
Competition Tribunal
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Competition Tribunal
Judgment
Merger Alert
Date of release: 7 December 2021
OUTCOME
OF MERGER DECIDED BY THE TRIBUNAL
Type of matter Tribunal decision
Parties involved FirstRand Bank Limited And Kulula Air (Pty) Ltd
Large merger Approved without conditions
FirstRand Bank Limited And Kulula Air (Pty) Ltd
The Tribunal has unconditionally approved the large merger whereby FirstRand Bank Limited ("FRB") intends to acquire control
over the airport lounges (the “Slow Lounge”) business of Kulula Air (Pty) Ltd (“Kulula Air”), a wholly owned subsidiary of Comair Limited (“Comair”).
The FirstRand Group is a financial services provider in South Africa licensed by the South African Reserve Bank. The FirstRand Group
offers a universal set of transactional, lending, investment and insurance products and services.
Kulula Air owns and operates the “SLOW” and “SLOW XS” branded airport lounges at OR Tambo International Airport, King Shaka International Airport, Cape Town International Airport and Lanseria International Airport. The Slow Lounges are airport lounges fitted, furnished and operated by Kulula Air with space rented from Airports Company South Africa (“ACSA”).
Issued by:
Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib
Case-aware research
Ask AI about this case
The judgment and available research above are public. New questions open in a separate private conversation grounded in this case.